True Cost

Investment Property Calculator

PRO

Institutional-grade underwriting for 1-4 unit rentals and short-term rentals. IRR, NPV, DSCR, depreciation, exit tax analysis.

Long-term rental. Optimize for cash flow and equity accumulation over your hold period.

$$350k
%

= $87,500 down

%

Closing $

$8,750
$
Total Cash Required$96,250

Conventional Mortgage

  • ›Principal + interest from payment 1
  • ›Fully amortizing over 15–30 years
  • ›Typically requires 20–25% down for investment properties
  • ›Lowest interest rates of any financed option

Best for: Long-term buy-and-hold investors who want predictable, fixed payments and the lowest rate.

Watch: Higher monthly payment than I/O; lower Year 1 cash flow.

$
%
pts

Points Cost

$0
$
Vacancy Rate5%
0%20%
$
%
$

Purchase PriceThe acquisition price of the investment property.

$350,000

Monthly RevenueYear 1 effective gross income (after vacancy/platform fees) divided by 12.

$2,090

Effective gross income / mo

Monthly CostsYear 1 total debt service plus all operating expenses, per month.

$2,993

Debt service + operating expenses

Monthly Cash FlowYear 1 net cash flow after all operating expenses and debt service.

-$903

Cash flow turns positive in Year 24

Cash-on-CashAnnual cash flow ÷ total cash invested (down payment + closing costs + rehab). Typical residential: 6-10%. Pre-income-tax — depreciation shelter shown separately.

Negative

-11.3%

Year 1 annual return on invested cash

Cap RateNet Operating Income ÷ Purchase Price. Financing-independent. Shows the raw yield of the property itself.

2.9%

NOI ÷ purchase price — financing-independent yield

Gross Rent MultiplierPurchase Price ÷ Annual Gross Rent. A quick screening metric. Rule of thumb: below 12 is favorable.

13.3×

Above 12 — evaluate carefully

DSCRDebt Service Coverage Ratio. DSCR lenders typically require ≥ 1.20. Below 1.0 means NOI doesn't cover the mortgage.

Low

0.48

NOI ÷ annual debt service

IRRInternal Rate of Return over your planned hold period, including all cash flows and net sale proceeds. The headline number for serious investors. Pre-income-tax on operating cash flow — depreciation shelter shown separately.

-3.9%

At 7-yr hold including exit proceeds

Equity MultipleTotal distributions (all cash flows + exit proceeds) ÷ total cash invested. 2.0× means you doubled your money. Pre-income-tax on operating cash flow.

0.67×

Total return on invested capital

Break-Even OccupancyThe occupancy % at which your cash flow = $0. The gap between break-even and assumed occupancy is your safety cushion.

136%

0%Occupancy100%
Break-even: 136%Cushion: -41%Assumed: 95%

Stacked view of where your wealth comes from — cash flow, principal paydown, and appreciation.

Year 1 cash flow from gross rent to net cash flow after debt service.

Gross Potential Rent$26,400
− Vacancy Loss-$1,320
= Effective Gross Income$25,080
− Property Tax-$4,200
− Insurance-$1,750
− Management-$2,006
− Maintenance-$3,500
− CapEx Reserve-$3,500
= Net Operating Income (NOI)$10,124
− Annual Debt Service-$20,957
= Net Cash Flow-$10,833
Monthly Cash Flow-$903/mo

Annual cash flow bars (green = positive, red = negative) with cumulative cash flow line.

Investment Property Calculator | True Cost | True Cost