One property is a snapshot. A portfolio is a plan.
The Ledger runs this math on every property you own, projects it 30 years forward, and models refinancing and reinvestment — showing the year your rentals replace your paycheck.
Start Free — Track 2 PropertiesHow this calculator works
It follows the standard rental cash flow formula: rent minus every cost of owning the property. The mortgage payment is principal and interest on the loan amount (purchase price minus down payment), using the standard amortization formula. Taxes and insurance are divided by 12. Vacancy, repairs and CapEx, and management are set as a percentage of rent, so they move with it.
For a line-by-line walkthrough of each expense — and a worked example using these same default numbers — read how to calculate cash flow on a rental property.
What the results mean
Monthly cash flow
What's left from rent after every expense, including the mortgage. Most buy-and-hold rentals land between $150 and $400 a month per door after a full expense list. Negative means you'd be paying each month to own the property.
Cash-on-cash return
Annual cash flow divided by the cash you put in (down payment plus closing costs). It tells you what your invested dollars earn each year in cash, before appreciation, loan paydown, or tax benefits. Many investors look for 8% or more.
Cap rate
Net operating income (rent minus operating expenses, before the mortgage) divided by the purchase price. It lets you compare properties regardless of how they're financed.
Why doesn't this include appreciation or depreciation?
Neither is cash in your pocket each month. Appreciation builds equity you can only access by selling or refinancing; depreciation is a tax deduction, not an expense. Both matter a great deal over time — see depreciation vs. appreciation on rentals.
Estimates are based on the numbers you enter and are not financial, tax, or legal advice.