Rental Property Calculator

By SoFi Editors | Updated October 16, 2025

Key Points

•   Main inputs for a rental property calculator include mortgage, loan term, interest rate, rental income, vacancy rate, and operating expenses.

•   Calculator results estimate annual profit or loss, aiding in comparing properties and planning for financial scenarios.

•   Prospective landlords should study local market demand and competition to ensure optimal rental income.

•   Budgeting for unexpected expenses, like legal actions and repairs, is essential to avoid financial strain.

•   Landlord insurance and tax advice are important for protecting investments and maximizing returns.


Calculator Definitions

•   Annual Rental Income: This represents all the rent your property could earn if it was occupied for the entire year. If you have multiple units in your building, add the monthly rent for each one and then multiply the total by 12.

•   Vacancy Rate: This is the number of days per year you estimate the rental property will be vacant, divided by the number of days in a year. For example, if a unit is vacant for two weeks between tenants once during a year, the math would look like this: 14 days vacant / 365 rentable days = .04 This equates to a 4% vacancy rate. If you are unsure how much to estimate, use the U.S. average vacancy rate for mid-2025 of 7%.

•   Management Fees: Many property owners pay someone to manage their rental business. The property manager handles day-to-day issues such as tenant complaints, scheduling maintenance, or advertising vacant units when necessary.

•   Annual Profit/Loss: This is the profit earned (or money lost) when expenses are subtracted from income. You will need to pay taxes on the income, and you will be able to deduct certain expenses against the tax burden. So you won’t necessarily walk away with 100% of any profits.