Rental Income Calculator

Gross income (monthly rent × 12 × occupancy%) minus operating expenses (utilities, management, maintenance) minus annual fixed costs (property tax, capital repairs reserve) minus estimated income tax.

Cap rate = net operating income ÷ property value, expressed as a percentage. It lets you compare a rental's return potential regardless of financing — generally 4-10%+ is considered a reasonable range depending on market and risk.

A 92% occupancy rate means about one month of vacancy per year — that alone reduces gross income by 8%, which flows straight through to a much larger percentage hit on net cash flow.

Individual landlords typically report on Schedule E at their marginal rate (roughly 22% effective combining federal + state is a common planning estimate); LLCs/S-Corps may have different effective rates depending on structure and the QBI deduction.