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Rental investment calculator

Cash flow, equity paydown, appreciation, and simplified tax effects. Results are illustrative only and are not financial, tax, or lending advice.

Property

Purchase price

$450,000

$100,000

$2,000,000

Down payment

20%

5%

40%

Monthly rent

$2,800

$500

$10,000

Mortgage

Interest rate

7.0%

3.0%

12.0%

Loan term

30 yr

10 yr

30 yr

Expenses

Property tax (annual)

1.2% of value

0.3% of value

3.0% of value

Insurance (monthly)

$120

$40

$500

Maintenance (annual)

1.0% of value

0.5% of value

3.0% of value

Vacancy rate

5.0%

0.0%

15.0%

Growth

Annual appreciation

3.0%/yr

0.0%/yr

8.0%/yr

Rent growth

2.0%/yr

0.0%/yr

6.0%/yr

Tax assumptions

Marginal income tax rate

32%

10%

50%

Building value (% of price)

80% (land = 20%)

50% (land = 50%)

90% (land = 10%)

Refinance

Mortgage refinancing

Lower your monthly payment — refinancing to a better rate can meaningfully improve your cash flow month over month.

Doorstead partners with Lima One Capital for investor lending. Offers subject to credit and program guidelines.

Monthly snapshot

Monthly mortgage

$2,395

$360,000 financed

Monthly cash flow

-$680

-$8,161 / year (pre-tax)

Monthly breakdown

$2,800 gross rent

Mortgage P&I

-$2,395


Property tax

-$450


Insurance

-$120


Maintenance

-$375


Vacancy loss

-$140

Net cash flow

-$680

Operating metrics

Cap rate

4.57%

NOI / purchase price

Gross rent mult.

13.4x

Price / annual rent

DSCR

0.72

Below 1.25 threshold

Break-even occupancy

100.0%

Occupancy to cover mortgage + operating

Full return stack (year 1, on cash invested)

Cash-on-cash

-$8,161/yr

-9.07%

Equity paydown (principal from rent)

$3,657/yr

4.06%

Appreciation (leveraged)

$13,500/yr

15.00%

Total pre-tax return

$8,996/yr

10.00%

Net tax benefit (after-tax adj.)

$5,630/yr

6.26%

Total after-tax return

$14,626/yr

16.25%

Pre-tax total

10.00%

After-tax total

16.25%

CoC (pre-tax)

-9.07%

Tax benefits (Schedule E, year 1)

Annual deductions

Mortgage interest

$25,084

Property tax

$5,400

Insurance

$1,440

Maintenance / repairs

$4,500

Depreciation ($360,000 ÷ 27.5 yrs)

$13,091

Total deductions

$49,515

Taxable rental income

-$17,595

Net tax benefit (32% marginal rate)

$5,630

After-tax cash flow

-$211/mo

-$2,531/yr

After-tax CoC

-2.81%

vs -9.07% pre-tax

10-year projection

Loading...

Equity at year 10

$295,838

$90,000 invested

After-tax CF (10yr cumul.)

-$11,032

Pre-tax cumulative CF plus tax benefit × years (simplified)

How to internalize

You are building wealth through:

  • Property appreciation
  • Principal paydown
  • Tax deductions

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WA: License# 21034868

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