Minimum Rent Calculator

Set a target cash-on-cash return for a rental and solve for the gross monthly rent required to hit it. The calculator grosses up for vacancy and operating expenses automatically.

Property price

Down payment

Rate

Term (years)

Operating expense ratio

Vacancy

Target cash-on-cash

Minimum rent for target return

$4,630

monthly

Break-even rent

$3,493

covers debt + opex only

Down payment / cash invested

$96,250

Monthly debt service

$1,970

56% of rent flows to NOI

How to use it

Set the cash-on-cash return you want to earn on the down payment. The calculator solves for the gross monthly rent required, after grossing up for vacancy and operating expenses.

If the minimum rent is at or below market rent for the property, the deal works at this leverage and target. If it's above market, you need a lower price, more cash down, a lower rate, or a lower target return.

How to Use

Enter the property price and your down payment percentage.
Enter the rate and term that drive monthly debt service.
Estimate operating expense ratio (35–50% on a stabilized residential rental).
Enter expected vacancy.
Enter your target cash-on-cash return — 6–10% is common for stabilized rentals; 12%+ for value-add.
Read the minimum gross monthly rent. If it's at or below market, the deal works.

Frequently Asked Questions

What's the difference vs break-even rent?

Break-even rent solves for $0 cash flow. Minimum rent for a target return solves for cash flow that produces a specific cash-on-cash percentage on the down payment.

How do I pick a target cash-on-cash?

It's investor preference. 6–8% is common for stabilized small multifamily in B-class neighborhoods. 8–12% for B/C class. 12%+ for value-add or higher-risk markets. Compare to alternatives (S&P, bonds, business equity).

Why use OER% instead of dollar opex?

OER% scales with rent, which makes the calculation circular if you use a dollar number that depends on the rent you're solving for. Using a percentage breaks the circularity and matches how appraisers and lenders model income.

Does this account for capex?

Include capex reserve in your operating expense ratio (often raises OER 5–10 points). Without capex reserves, your minimum rent is too low and the first major repair eats years of cash flow.