Real Estate Calculator Biggerpockets

This real estate calculator helps BiggerPockets investors analyze potential rental properties. Calculate key metrics like ROI, cash flow, and investment payback period to make informed decisions about your real estate investments.

How to use this calculator

Enter the property details in the calculator panel on the right. The calculator will compute key metrics to help you evaluate the investment potential of the property.

For most accurate results, use after-repair value (ARV) rather than purchase price when available. This accounts for any necessary renovations.

Formula used

ROI (Return on Investment)

ROI = [(Annual Cash Flow / Purchase Price) × 100]%

Annual Cash Flow

Annual Cash Flow = [(Monthly Rent × 12) - Annual Expenses]

Payback Period

Payback Period = Purchase Price / Annual Cash Flow

Worked example

Let's calculate metrics for a $200,000 property with $1,500 monthly rent and $1,200 monthly expenses:

Metric	Calculation	Result
Annual Cash Flow	($1,500 × 12) - ($1,200 × 12) = $1,800 × 12 = $21,600	$21,600
ROI	($21,600 / $200,000) × 100 = 10.8%	10.8%
Payback Period	$200,000 / $21,600 = 9.26 years	9.26 years

FAQ

What is a good ROI for rental properties?

A good ROI typically ranges from 8% to 12% for rental properties. However, this can vary significantly based on location, property type, and market conditions.

How do I calculate annual expenses?

Annual expenses include property taxes, insurance, maintenance, utilities, and mortgage payments. Multiply your monthly expenses by 12 to get the annual figure.

What factors affect cash flow?

Cash flow is affected by rental income, operating expenses, vacancy rates, and collection efficiency. Higher rental income and lower expenses generally improve cash flow.