Free property calculator

Is that rental actually worth it?

Run the real numbers before you buy: gross and net yield, monthly cash flow, and cash-on-cash return. Then check rent vs buy with the simple 5% rule. Everything stays in your browser.

The property
Net rental yield (cap rate)
0%
Gross yield: 0%
The numbers
Effective annual rent (after vacancy)-
Annual operating costs-
Net operating income (NOI)-
Annual mortgage payments-
Monthly cash flow-
Cash-on-cash return-
🏠 Rent vs buy: the 5% rule

A quick sanity check for living in it yourself. If yearly rent on a comparable home is less than ~5% of the price to buy, renting and investing the difference is often the cheaper choice.

5% rule monthly breakeven for this price
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How to read these numbers

Gross yield is annual rent divided by price, before costs. It is a quick comparison number. Net yield (also called the cap rate) takes out operating costs like tax, maintenance, insurance, management and an allowance for vacancy. It is the honest one.

Cash flow is what actually lands in your pocket each month after the mortgage. Cash-on-cash return compares your yearly cash flow to the cash you put in (the down payment), which is what tells you if your money is working. A negative cash flow means the property costs you money to hold.

The 5% rule is a rule of thumb for the rent-versus-buy decision when you would live in the home, popularised as a simple stand-in for the unrecoverable costs of owning (roughly 1% maintenance, 1% property tax, 3% cost of capital). It is a guide, not gospel. Local taxes, appreciation, and how long you stay all matter.