Rental Property Calculator
Analyse rental income, monthly cash flow and cash-on-cash return on a rental property. See whether the rent covers the EMI before you buy.
Maintenance, property tax, insurance and other running costs.
Monthly cash flow
₹-25,483
Negative — you add money each month
Cash-on-cash return
-17%
Annual cash flow ÷ down payment
Monthly EMI
₹62,483
Down payment ₹18,00,000
Total rent over tenure
₹1,08,00,000
Total cash flow ₹-61,15,985
Cash-on-cash return measures the income your down payment generates — it does not include property appreciation or the tax benefits of a home loan. Vacancy months and rent revisions are not factored in.
Last updated: March 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
Use the rental property calculator before buying a flat to let out — the single most common Indian investment purchase and the one most often justified with rent that does not cover the loan. This tool shows the monthly reality: rent minus expenses minus EMI, and the cash-on-cash return that tells you what the down payment actually earns as income. For a ₹90,00,000 example, the −17% cash-on-cash return means the property is a cash drain until appreciation rescues it, which is exactly the decision information a buyer needs. Combine it with the real estate calculator to add appreciation and resale math, and with the rent calculator to see what the tenant alternative looks like. Landlords with existing flats can use it to test whether a rent revision makes the unit profitable.
How to Use This Calculator
- Step 1: Enter the purchase price and the down payment percentage.
- Step 2: Enter the monthly rent you expect and the loan rate and tenure.
- Step 3: Enter monthly expenses — society maintenance, property tax, insurance, repairs.
- Step 4: Read the monthly cash flow and the cash-on-cash return on your down payment.
Worked Example
An ₹90,00,000 flat with a 20% down payment and an 8.5% loan over 20 years has a ₹62,483 monthly EMI. Renting it for ₹45,000 with ₹8,000 of expenses produces a monthly cash flow of −₹25,483 and a cash-on-cash return of −17% on the ₹18,00,000 down payment. The rent barely covers half the EMI, so the owner funds the difference every month and any profit must come from appreciation — which the rental calculator alone does not show.
Tips and Common Mistakes
- •Tip 1: Set aside 20–30% of rent for vacancies and repairs; a fully-let assumption flatters the numbers.
- •Tip 2: Rental income is taxed in your slab after a 30% standard deduction, and home loan interest is deductible up to ₹2 lakh.
- •Tip 3: Cash-on-cash return measures the income your down payment generates — compare it with a fixed deposit's yield.
- ✗Mistake 1: Do not evaluate a rental on rent alone — in most Indian metros the EMI exceeds the rent at current rates.
- ✗Mistake 2: Do not ignore the opportunity cost of the down payment; the cash-on-cash figure exposes it.
Frequently Asked Questions
What is cash-on-cash return?
It is your annual cash flow divided by the down payment, expressed as a percentage. In India, most city rentals at current loan rates produce a negative cash flow, so the return on the down payment alone is often negative before appreciation.
Why is my monthly cash flow negative?
In many Indian metros the EMI exceeds the rent once rates are around 8–9%, especially after expenses. A negative figure means you fund the shortfall from your own pocket each month and rely on appreciation for profit.
What expenses should I include?
Society maintenance, property tax, insurance and routine repairs. A common rule of thumb is to set aside 20–30% of the rent for maintenance and vacancies; enter that estimate as a fixed monthly figure.
Does the calculator include tax on rental income?
No. Rental income is taxed in your slab after a 30% standard deduction on the gross rent, and home loan interest is deductible up to ₹2 lakh. Your after-tax cash flow will be lower than shown.
Should I consider property appreciation?
Yes — appreciation is usually the main source of profit for landlords, since rents alone rarely cover the loan. Use the real estate calculator to add appreciation, holding costs and resale value to this picture.
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