INVESTOR TOOL

Rental ROI Calculator (Cash Flow + Returns)

Run conservative numbers before you buy.

Estimate cash flow, cap rate, cash-on-cash return, and DSCR using realistic inputs.

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Conservative-by-default assumptions

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Includes vacancy + operating expenses

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Financing-aware (mortgage inputs)

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Clear outputs you can screenshot/share

This calculator provides estimates for educational purposes and does not constitute financial, legal, or tax advice. Actual results vary based on property condition, market conditions, financing terms, and operations.

4
FOUR SAIL TEAM
eXp REALTY
📞 970-691-0122

Unlock Your Equity Calculator

See exactly how much equity you’ve built — even with your low 2020-era rate.

YOUR ORIGINAL MORTGAGE (2020)

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CURRENT SALE + NEXT HOME

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%
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$
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Your Results

Current Mortgage Balance

$392,000

Original loan: $440,000

Total Equity Built

$378,000

Estimated Net Proceeds (what you walk away with)

$325,000

→ This becomes your next down payment

The Trade-Off vs. The Upgrade

OLD PAYMENT

$1,850

NEW

NEW PAYMENT

$2,280

+$430 / month

Powered by Brandon Rearick • Four Sail Team • eXp Realty

Recommended Default Assumptions (Edit Anytime)

Conservative defaults (suggested):

Vacancy: 5–8%

Maintenance: 5% of rent

CapEx reserves: 5% of rent

Property management: 8–10% of rent (if using PM)

Note : If the property is older, value-add, or has deferred maintenance, increase reserves.

What the Metrics Mean (in Plain English)

Cash Flow

The money left after operating expenses and the mortgage payment (pre-tax).

NOI (Net Operating Income)

Income after operating expenses (before mortgage payments). Useful for comparing properties.

Cap Rate

NOI divided by purchase price (or property value). A quick way to compare unleveraged performance.

Cash-on-cash Return

Annual pre-tax cash flow divided by total cash invested. Useful when financing is involved.

DSCR (Debt Service Coverage Ratio)

NOI divided by annual debt service. Often used by lenders to evaluate rental loan strength.

How to Use This Calculator (Fast Workflow)

  • Step 1: Get realistic rent comps

    Use rents that match condition, location, and tenant quality—not the highest rent you saw online.

  • Step 2: Use conservative expenses

    Underestimating costs is the #1 reason deals look “better” than they are.

  • Step 3: Pressure-test financing

    Try different down payments and rates to see how sensitive cash flow is.

  • Step 4: Decide the next action

    Pass / tour / offer.

Common Mistakes Investors Make (and How to Avoid Them)

Ignoring vacancy and turnover costs

Forgetting CapEx (big-ticket items: roof, HVAC, appliances)

Using optimistic rent assumptions

Not budgeting for property management (even if you self-manage)

Underestimating insurance/taxes or HOA changes

Skipping a conservative scenario (base + worst-case)

Investing in Northern Colorado

If you’re investing locally, strategy depends on your goals and the neighborhood.


Use the investor hub to explore areas and get help evaluating listings.

Want a Second Set of Eyes on a Deal?

If you share the listing and your goals, Brandon will help you pressure-test the numbers and identify risks before you commit.

Frequently Asked Questions

  • 1) Is this calculator accurate?

    It’s as accurate as the inputs. It provides estimates for planning. Actual costs, vacancy, and performance vary by property and operation.

  • 2) What expenses should I include?

    At minimum: vacancy, taxes, insurance, maintenance, and CapEx reserves. Add HOA, utilities, management, and any recurring costs the owner pays.

  • 3) What’s a good cash-on-cash return?

    “Good” depends on your risk tolerance, strategy, and market conditions. Use conservative scenarios and compare multiple properties.

  • 4) What’s the difference between cap rate and cash-on-cash return?

    Cap rate is based on NOI and property value (no financing). Cash-on-cash is based on cash flow and your cash invested (financing-aware).

  • 5) Does this include taxes and depreciation?

    No. This tool is pre-tax for simple comparison. Talk with a tax professional for after-tax planning.

  • 6) Can this be used for STRs or house hacking?

    Yes, but ensure your assumptions match the strategy (income seasonality, furnishing/turnover, regulation, etc.). Verify local STR rules.

  • 7) What should I do after the calculator?

    If the deal looks workable under conservative assumptions, request a deal review and confirm rent comps, expenses, and financing.