US Rental ROI Calculator
Estimate the return on a US rental. Enter a price and expected rent (the operating costs come pre-filled from a real launch market) and see monthly cash flow, cap rate, and cash-on-cash return.
For buyers abroad sizing up a US rental.
Operating costs seeded from illustrative Houston assumptions: property tax 2.81% of price, insurance $1,800/yr, management 10% of income, maintenance 5% of rent, vacancy 5%. Illustrative; confirmed per property at qualification.
Monthly cash flow
$659
After operating expenses
Cap rate
3.39%
Cash-on-cash
3.39%
Net operating income / yr
$7,907
What the numbers mean
- Cap rate
- The property's yearly net income as a percentage of its price. Because it ignores how you pay, you can line up two very different homes and compare their earning power directly.
- Cash-on-cash return
- Your yearly cash flow as a percentage of the cash you actually put in. Where cap rate judges the property, cash-on-cash judges the return on the money you tied up.
- Net operating income (NOI)
- Gross rent minus operating costs (property tax, insurance, management, maintenance, vacancy, and HOA) before any loan payment. It's the engine behind both rates above.
A worked example
Take the pre-filled Houston example, a $232,990 home renting for $1,724 a month, bought in cash:
Lower the cash-invested share and cash-on-cash pulls away from the cap rate. That's leverage at work.
How to read your results
Positive cash flow is the first thing to look for
A positive monthly number means the rent covers every operating cost with money to spare. A negative one means the property runs at a monthly loss at these inputs, common in pricier markets, and something more rent or a lower price fixes quickly.
A higher cap rate isn't automatically better
US rental cap rates commonly sit in a mid-single-digit range, but it varies widely by market and property. A high cap rate often signals a softer market or more risk rather than a free lunch; a lower one can reflect a stronger, higher-growth area. Use it to compare properties, not as a target. (Illustrative ranges, not advice.)
Cash-on-cash reflects your leverage
Put in less cash and the same income becomes a larger return on it, but financing carries its own cost and risk, which this cash-basis tool doesn't model. Check whether a property finances on its rent with the DSCR qualifier.
Common questions
Is a higher cap rate always better?
No. A higher cap rate frequently comes with higher risk or a slower-growing market. Read it alongside the location, the property's condition, and your own goals.
Does this include a mortgage payment?
No. It models a cash or partial-cash purchase. Financing changes your cash-on-cash return and adds costs; use the DSCR qualifier to see whether a property finances on its rent.
Why are the operating costs pre-filled?
They're seeded from illustrative, market-specific underwriting references, so you start from a realistic baseline. Adjust any of them to match a specific deal.
Are these returns guaranteed?
No. Every figure is an educational estimate and is confirmed per property at qualification.
Keep going
How this is calculated
How the return is calculated
- Net operating income (NOI) = gross annual rent minus operating expenses: property tax, insurance, management, maintenance, vacancy, and any HOA.
- Cap rate = NOI ÷ purchase price.
- Cash-on-cash = annual cash flow ÷ the cash you actually put in (set by the cash-invested share).
Where the numbers come from
- Operating-cost assumptions are seeded per market from Dara's internal underwriting reference (property tax %, insurance, management %, maintenance %, vacancy %).
- You set price, expected rent, and cash share; every result recomputes live from those.
What it isn't
- An estimate, not a guarantee. Costs are illustrative and confirmed per property at qualification.
- It models a cash / cash-share basis: it doesn't include loan payments, appreciation, or income taxes.
The full method across every tool: How we calculate these →
Educational estimates, not financial, tax, or investment advice. Figures are illustrative and confirmed per property at qualification.