What is a good ROI for rental property?

A good cash-on-cash ROI for rental property is generally 8-12% or higher. Total ROI including appreciation, equity paydown, and tax benefits can be significantly higher. Markets, financing terms, and property type all affect what is achievable.

What is the difference between cash-on-cash return and ROI?

Cash-on-cash return measures annual pre-tax cash flow divided by total cash invested (down payment plus closing costs). Total ROI includes appreciation and equity buildup in addition to cash flow. Cash-on-cash is a simpler, more conservative metric focused on actual cash received.

How do I calculate rental property ROI?

Rental ROI = (Annual Net Income / Total Cash Invested) x 100. Annual net income equals gross rent minus all expenses including mortgage, taxes, insurance, maintenance, and vacancy. Total cash invested includes your down payment, closing costs, and any initial repairs.

Rental Property ROI Calculator, SealedFolio

Purchase Details

Purchase Price

Down Payment

Closing Costs

Typically 2-3% of purchase price

Monthly Income & Expenses

Monthly Rent

Monthly Mortgage Payment

Monthly Operating Expenses

Taxes, insurance, repairs, management (excluding mortgage)

Growth Assumptions

Annual Appreciation Rate

Historical US average: ~3.5%. Use 0 for conservative estimate.

Annual Rent Growth

Investment Returns

Total Cash Invested

Down payment + closing costs

Monthly Cash Flow

Rent minus all expenses including mortgage

Cash-on-Cash Return (Year 1)

0.00%

Break this one down in the cash-on-cash return calculator

5-Year Projection

Year	Property Value	Equity	Annual CoC
Enter values to see projection

5-Year Total Return

Cumulative Cash Flow $0

Appreciation Gain $0

Equity Paydown (principal) $0

Total 5-Year Gain $0

Total ROI on Cash Invested 0.00%

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Rental ROI Calculator