Rent Calculator

Evaluate the financial potential of a rental property investment

Investment Details

About Rent

Investing in rental properties involves purchasing real estate to generate income through rent payments. This calculator evaluates the financial performance of a rental property by considering rental income, operating expenses, and property value appreciation over time. It helps investors assess cash flow and potential returns to make informed decisions about property investments.

How It's Calculated

Cash Flow:

Monthly Cash Flow = Monthly Rent - Monthly Expenses
Annual Cash Flow = Annual Rent - Annual Expenses

Property Value:

Property Value = Initial Value × (1 + Appreciation Rate)^Years

Return on Investment:

Total Return = Property Value + Cumulative Cash Flow - Initial Investment
Annualized ROI = (Total Return / Initial Investment) / Years × 100

Key Insights

  • •Positive cash flow ensures sustainable investments
  • •Property appreciation significantly boosts long-term returns
  • •High expenses can erode profitability; control costs
  • •Rent increases should align with market trends to stay competitive
  • •Longer holding periods amplify returns through compounding