Rental Property Investment Calculator

The agreed or estimated purchase price, before closing costs and renovation expenses.

The percentage of the purchase price paid from your own funds. Enter 100 for an all-cash purchase.

The annual interest rate quoted by your lender. This example assumes a fixed-rate loan.

The number of years used to repay the loan. This calculator assumes fully amortizing monthly payments.

Cash paid at purchase for lender, title, escrow, and other closing charges. Avoid counting costs twice if your estimate includes taxes or insurance already entered elsewhere.

One-time renovation or repair costs before renting. Ongoing small repairs belong under Maintenance instead.

Cash kept available after purchase for unexpected expenses or periods without rent. As a planning starting point, consider 3–6 months of mortgage payments, property taxes, insurance, HOA fees, and other unavoidable ownership costs—not months of gross rent. For example, if those bills total $2,000 monthly, 3–6 months is $6,000–$12,000. This is a planning suggestion, not a universal standard. Increase the cushion for older systems, large insurance deductibles, or longer vacancies. Your lender may require a different amount: certain Fannie Mae investment-property loans require six months of the qualifying housing payment, with additional reserves possible. Confirm your loan requirements with your lender. This cash remains yours, is included in upfront cash, and is not deducted again as a monthly expense. It is not a tenant security deposit; coordinate it with your separate replacement reserve to avoid counting the same cash twice.

Expected rent per month when occupied, before expenses and vacancy. Use comparable rentals to estimate it.

Choose annual dollars or a percentage of purchase price. Percentage mode estimates annual tax as purchase price × rate; taxable value may differ and prior owner exemptions may not apply. Switching units converts the current amount. Use a verified investor-specific tax estimate.

Annual landlord insurance cost, plus flood coverage if applicable. Use an actual quote where possible.

Total HOA or condominium fees per year. Multiply a monthly fee by 12. Include other recurring assessments under Other expenses.

Other monthly ownership costs, such as owner-paid utilities, PMI, or recurring assessments. Budget leasing and renewal fees here as a monthly average if applicable. Do not duplicate expenses in other fields.

Rent you expect to lose while the property is unoccupied, expressed as a percentage of potential annual rent. One vacant month per year is about 8.3%. For illustration, a 5% allowance equals about 18 days per year; this is not a Houston market average. Adjust it for local leasing demand and expected tenant turnover. You can also choose a monthly dollar allowance. Switching units converts the current amount; adjust it as needed.

An allowance for routine repairs and upkeep, such as plumbing repairs or appliance service. Here it is a percentage of rent collected after vacancy. A 5% allowance is an illustration, not a universal recommendation; older properties may need more. Budget major replacements separately. You can also choose a monthly dollar allowance. Switching units converts the current amount; adjust it as needed.

The ongoing fee for professional rental management. Houston providers often quote around 8–10% of rent, though some charge flat fees or different rates. Here the percentage applies to rent after vacancy. Enter 0 if self-managing. Tenant-placement, renewal, and other fees may be separate; budget those under Other expenses. Confirm the provider’s actual terms. You can also choose a monthly dollar allowance. Switching units converts the current amount; adjust it as needed.

Money set aside each month for eventual major replacements, such as a roof, HVAC system, or water heater. Estimate each item’s future cost divided by the months until replacement, then add the amounts. This monthly allowance is separate from routine maintenance and your initial cash reserve.