Rental Analyzer

Underwrite rental properties with Cap Rate, Net Operating Income (NOI), Cash-on-Cash Return, and Debt Service Coverage Ratio (DSCR).

CCIM & Real Estate Underwriting StandardsRuns on your deviceCap Rate = Net Operating Income (NOI) / Purchase Price × 100

Inputs

Results update live

Rental underwriting worksheet

Use your own listing, rent, expense, and lender assumptions. Operating expenses are separate from debt service so NOI, cap rate, cash flow, cash-on-cash, and DSCR stay conceptually distinct.

Acquisition and income

Purchase price ($)

Initial cash invested ($)

Down payment, closing, and setup cash you choose to include; enter 0 to omit cash-on-cash.

Monthly rent ($)

Other monthly income ($)

Only recurring property income you support with evidence.

Vacancy and credit loss (%)

Monthly operating expenses

Property tax ($)

Insurance ($)

Repairs and maintenance ($)

Property management ($)

Owner-paid utilities ($)

HOA / condo fees ($)

Other operating expenses ($)

Financing

Monthly debt service ($)

Enter the payment you want to model. This tool does not quote a loan or determine eligibility.

Interpretation

How Rental Underwriting works

The worksheet turns entered monthly income, vacancy, operating expenses, debt service, purchase price, and initial cash into a single-year underwriting view. It does not assume a down payment, predict rent, estimate an appraisal, include selling costs, or approve financing.

Example

Key features

A realistic scenario showing how the calculation guides a practical decision.

Formula

Monthly NOI = scheduled income − vacancy loss − operating expenses. Monthly cash flow = NOI − debt service.

Separate NOI from debt service
Cap rate, cash flow, cash-on-cash, and DSCR from entered assumptions
No hidden fixed down-payment assumption
Copyable worksheet for a lender, agent, accountant, or adviser discussion

Watch out

Common mistakes

Stress-test assumptions with figures you can document. Confirm tax, insurance, rent rules, repairs, lease-up, reserves, local regulation, and financing with the responsible parties before deciding to buy.

Related tools

Adjacent decisions

Mortgage CalculatorCalculate monthly mortgage payments Closing Cost CalculatorPlan cash to close from entered estimates Rental Income ProjectorProject rental income Property CalculatorCalculate property metrics

FAQ

Frequently asked questions

How the calculation works and where its limits are.

What is Net Operating Income (NOI) and how is it calculated?

Net Operating Income (NOI) equals Effective Gross Income (Gross Scheduled Rent minus Vacancy Rate plus Other Income) minus all property Operating Expenses (taxes, insurance, management, maintenance, HOA, utilities). NOI intentionally excludes mortgage debt service and income taxes.

What is the difference between Cap Rate and Cash-on-Cash Return?

Capitalization Rate (Cap Rate) measures the unleveraged rate of return on the total property purchase price (NOI / Purchase Price). Cash-on-Cash Return measures the leveraged annual pre-tax cash flow divided by the actual initial out-of-pocket cash invested (Annual Cash Flow / Total Cash Invested).

What is Debt Service Coverage Ratio (DSCR) and why do lenders require it?

DSCR equals Net Operating Income divided by Annual Debt Service (Principal & Interest payments). DSCR lenders typically require a minimum ratio of 1.20x to 1.25x to ensure rental cash flow easily covers mortgage payments with a safety buffer.

Is this rental property analysis investment or tax advice?

No. All outputs are deterministic underwriting models based on your entered property pro-forma assumptions. Perform physical property inspections, verify local leases, and consult a CPA or licensed broker before acquiring real estate.

What should I do after analyzing a prospective rental deal?

Use our Rental Income Projector to model multi-year rent growth and tax depreciation, and check our Closing Cost Calculator to verify total capital required at the closing table.