Enter a property's purchase price, down payment, rent, and expenses below. The analyzer calculates your key metrics against lender benchmarks and returns a verdict — no signup, no download, no waiting.
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Assumes 30-year fixed mortgage, 2% closing costs included in cash-on-cash denominator. This calculator covers 4 of the 11 metrics in the Deal Analyzer Pro spreadsheet — it does not include IRR, Debt Yield, sensitivity tables, or the 5-year pro forma.
Three metrics determine whether a deal works. Each is measured against the benchmarks lenders and institutional investors use:
| Metric | GO | MARGINAL | NO-GO |
|---|---|---|---|
| Cap Rate | ≥5% | 3.5–4.9% | <3.5% |
| DSCR | ≥1.20 | 1.00–1.19 | <1.00 |
| Cash-on-Cash | ≥6% | 3–5.9% | <3% |
Overall verdict: GO requires all three metrics at GO thresholds. MARGINAL means at least one metric falls short but none are below the NO-GO floor. NO-GO means any metric fails the minimum threshold — typically DSCR below 1.00 (negative cash flow) or cap rate below 3.5%.
2026 market note: With 30-year investment loan rates near 7–7.5%, many properties that penciled in 2020 no longer pass DSCR and cash-on-cash thresholds. A deal showing MARGINAL on these metrics is not necessarily a bad investment — appreciation and principal paydown still build wealth. But it will not qualify for a DSCR loan and should not be underwritten as a cash-flow play.
$200,000 purchase / 25% down / $2,400/month rent / $700/month expenses / 7% rate
$200,000 purchase / 20% down / $1,900/month rent / $600/month expenses / 7.5% rate
$450,000 purchase / 20% down / $2,800/month rent / $900/month expenses / 7.5% rate
This analyzer gives you a fast filter. Four metrics in 10 seconds. What it cannot do:
The Deal Analyzer Pro spreadsheet covers everything this calculator does — plus IRR, Debt Yield, sensitivity tables, and the Lender Solver. Open in Excel, Google Sheets, or Numbers. Instant download.
Start with Lite — $9 See Pro — $29What is a good DSCR for a rental property?
Most DSCR lenders require a minimum of 1.20 — meaning the property generates 20% more income than it costs to service the debt. Some lenders accept 1.10 on strong markets. Below 1.0 means the property does not cover its own mortgage and virtually no institutional lender will fund it. For buy-and-hold investors, targeting 1.25+ gives a margin of safety if rent drops or vacancy increases.
What is a good cap rate for a rental property in 2026?
In 2026, a 5–8% cap rate is considered healthy for residential rentals. Class A suburban markets often trade at 4–5% because investors accept lower yield for lower risk. Value-add and secondary-market properties typically price at 7–9%. Below 4% in most markets means you are overpaying relative to cash flow — appreciation is doing most of the work, which adds significant risk.
What should I include in monthly operating expenses for a rental property?
Monthly operating expenses should include: property taxes (divide annual tax by 12), landlord insurance, maintenance and repairs (budget 1% of property value per year, roughly $1,000/year per $100K of value), property management fees if applicable (8–10% of rent), and a vacancy reserve (5% of rent is a conservative starting point). Do not include mortgage principal and interest — those are debt service, not operating expenses.
How is cash-on-cash return calculated for a rental property?
Cash-on-cash return = annual pre-tax cash flow divided by total cash invested. Total cash invested includes the down payment plus closing costs (typically 2–3% of the purchase price). Annual pre-tax cash flow = annual NOI minus annual debt service (mortgage payments). A cash-on-cash return above 6% is generally considered strong for buy-and-hold residential real estate.