Home Investment Calculator

We think buying a rental property is one of the finest financial moves you can make. But even though deciding to buy a home is easy, figuring out the associated costs and how much money you're going to make is a lot more work. So we built the planning tool we wanted for doing just that, and put it here for you to use, too. If you don't know what something is, click it!


P.s. To start managing your rental properties check out the app.

Sorry, we haven't yet finished building this tool for mobile yet.

Try using it on your desktop!

Initial Rental Income (monthly)

How much you will charge for rent when you begin renting the home.

Saved Living Expenses (monthly)

If you intend to live in the home you buy while renting it, you can add here the money you'll save each month by not paying to live elsewhere.

Annual Rent Increase

How much you expect the rent you charge to increase each year, on average. In suburban areas rent typically increases 1.5% - 2% each year, but in faster growing cities this could be over 4%.

Depreciable Portion

The percentage of your entire purchase that is tax depreciable.

Only the value of a home is depreciable. If your purchase includes the property that a home is on, or anything else of value, enter the percentage of your entire purchase that is the value of the home.

If you're paying $200,000 for a home and property, and the home is worth $150,000, enter 75%. If you don't know, 70% is a decent estimation. For condos/apartments, this is probably 100%.

Read more about tax depreciation on a home here.

Total Depreciable Amount

The total cash amount that you can depreciate over the home's useful lifetime. This calculation is made using a useful life of 27.5 years, per the General Depreciation System.

Annual Depreciation

How much you will earn back each year through tax depreciation on your home.

Annual Home Appreciation

How much you expect the value of the home (including property) to appreciate each year. This can be based on development of the home or property itself, growth of the surrounding area, or other factors regional factors. 3% is a reasonable estimate for most suburban homes.

Initial Monthly Revenue

The total revenue you will pocket each month, at first. Your monthly revenue will increase over time as you pay off loans, charge more for rent, and your home appreciates. This number factors in money you'll earn back through tax depreciation once a year, so this isn't entirely liquid revenue.

Home Cost

The total cost you pay for your home.

Down Payment

The percentage of the total home cost you will pay up front. Putting down more money up front means you can obtain a smaller mortgage, and pay less total interest.

Putting down less than 20% often requires buying personal mortgage insurance (PMI), which will accrue additional interest cost each month until you've obtained 20% equity in the home.

Initial Cost

The up-front cost of buying your home.

Mortgage Interest Rate

If you aren't paying for the entire home in cash, you'll need a mortgage. Read more about mortgages and what kind of interest rate you can expect here.

Mortgage Term (years)

How many years your mortgage program will last.

Mortgage Principal

The portion of the home left over after your down payment, to be covered on a mortgage. If you're buying a $200,000 home and put down $40,000, the principal will be $160,000. This is the total amount you will pay off over the course of your Mortgage Term.

Lifetime Interest Paid

The total amount of interest you will pay on the home over the course of paying off your mortgage.

Monthly Mortgage Payment

Your total mortgage payment each month, including payment made on the loan principal as well as on interest.

Loan-to-Value (LTV)

This is the ratio of your mortgage amount to the total value of your home, effectively the inverse of your down payment percentage. This can be a useful metric to reference during a mortgage approval process.

PMI Rate

The interest rate on your private mortgage insurance (PMI), if applicable. You will be required by your mortgage lender to buy PMI if your down payment is less than 20% of the home value. Read more about PMI here.

Initial PMI Cost (monthly)

The total amount you will pay on your PMI each month. You'll only need a PMI if you put down less than 20% on your home, so this amount will be zero if your down payment is at least that.

Home Insurance Cost (monthly)

The amount you will pay each year on homeowner's insurance.

Maintenance Costs (monthly)

Estimated monthly costs for maintenance, repairs and improvements.

Property Tax (monthly)

How much you will pay in property tax each month based on the home value and its location.

Total Monthly Cost

The total amount of expenses you will pay each month.

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Initial Rental Income (monthly):


Saved Living Expenses (monthly):


Annual Rent Increase:


Depreciable Portion:


Total Depreciable Amount:


Annual Depreciation:


Annual Home Appreciation:


Initial Monthly Revenue:



Home Cost:


Down Payment:


Initial Cost:


Mortgage Interest Rate:


Mortgage Term (years):

Mortgage Principal:


Lifetime Interest Paid:


Monthly Mortgage Payment:


Loan-to-Value (LTV):


PMI Rate:


Initial PMI Cost (monthly):


Home Insurance Cost (monthly):


Maintenance Costs (monthly):


Property Tax (monthly):


Total Monthly Cost:


Month Principal Remaining Home Equity PMI Cost Net Revenue Home Value Total Profit
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