Property Management Calculator — Calculate ROI & Expenses

Property Management Calculator

Calculate rental property ROI, cash flow, cap rate, and expenses. Analyze profitability for residential and commercial properties.

Step 1: Property Details

$350,000
$2,500
$1,200

Key Property Metrics

Cap Rate = (Net Operating Income / Property Value) × 100
Cash Flow = Rental Income – Expenses
ROI = (Annual Profit / Total Investment) × 100

Step 2: Financing & Options

$280,000
4.5%

Common Property Metrics

Good Cap Rate: 4-10%
Positive Cash Flow: $200+ per month
Target ROI: 8-12% annually
Expense Ratio: 35-50% of income

Property Analysis Results

Summary
Property Comparison
Formulas

Annual Cash Flow

$15,600
$1,300 monthly • 12% ROI
Cap Rate
7.8%
Monthly Cash Flow
$1,300
Annual ROI
12.0%
Expense Ratio
48%

Property Type Comparison

Property Type Avg Cap Rate Avg Cash Flow Expense Ratio

Property Management Formulas

Cap Rate = (Net Operating Income / Property Value) × 100

Where:
• Net Operating Income = Annual Rental Income – Annual Expenses
• Property Value = Current market value or purchase price

Other Key Formulas:
• Cash Flow = Rental Income – All Expenses (including mortgage)
• ROI = (Annual Profit / Total Investment) × 100
• Expense Ratio = (Total Expenses / Total Income) × 100
• Gross Rent Multiplier = Property Value / Annual Gross Rent

Example Calculation

Example: $350,000 Rental Property

Property Value: $350,000
Monthly Rent: $2,500 ($30,000 annually)
Monthly Expenses: $1,200 ($14,400 annually)
Mortgage Payment: $1,400 monthly

Calculation:
Net Operating Income = $30,000 – $14,400 = $15,600
Cap Rate = ($15,600 / $350,000) × 100 = 4.46%
Monthly Cash Flow = $2,500 – $1,200 – $1,400 = -$100

Note: This property has negative cash flow but appreciates in value.

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