Rental Property Maximum Offer Calculator
Work backward from your target return to a purchase price, using the rent, financing and costs you expect.
Free to use. No account needed.
Example shown. Adjust the assumptions
Maximum purchase price
$137,003.31
For a first-year cash-on-cash target of 8%, using these assumptions.
- Down payment
- $34,251
- Loan amount
- $102,752
- Monthly principal & interest
- $718
- Cash-on-cash return
- 8%
Your numbers carry over. No account needed.
Save and compare with Plus. Add taxes, sale planning and scenarios.
Using the result
Use the result as a return threshold alongside market value and the property’s condition.
How the maximum offer is calculated
The calculator searches for the highest purchase price whose first-year cash-on-cash return meets your target. Each price changes the down payment, loan payment and percentage-based closing costs. Rent, repairs and dollar operating costs stay fixed.
Cash-on-cash return = annual cash flow ÷ (down payment + closing costs + initial repairs)
Annual cash flow is rent after vacancy, management, taxes, insurance, maintenance, replacement reserves, other costs and the full mortgage payment. Principal repaid builds equity separately and is not counted as cash flow.
This is a price threshold for the assumptions you enter. It does not estimate market value or tell you what a seller will accept. A first-year return target also cannot capture every risk or a later sale.
Example with these assumptions
With $2,000 monthly rent, 25% down, a 7.5% 30-year loan, 4% closing costs and $10,000 in initial work, the example operating budget supports about $137,003 at an 8% first-year cash-on-cash target. That requires $49,731 upfront and leaves $332 a month.
Before income tax. Verify inputs and estimates before acting. Terms & privacy.
Common questions
Is this the same as the 70% rule?
No. The 70% rule is a shortcut often used for a renovation and resale project. This calculator evaluates a rental held for income and solves for a first-year cash-on-cash return. It does not use after-repair resale value.
What if my target has no solution?
The tool says so. For example, if the operating budget cannot cover debt and the return on upfront repairs, lowering the price may still be insufficient. Revisit the rent, costs and target rather than treating a zero-dollar answer as an offer.
Does appreciation count toward the target?
No. Appreciation and mortgage paydown can affect total return, but they are not spendable rental cash. Carry the result into the property analyzer to see cash flow and mortgage equity separately. Plus adds sale planning, tax estimates and saved comparisons.
What carries into the full property analyzer?
Your selected price, financing, rent, costs, reserves and repairs. The new analysis starts with 3% annual rent and fixed-cost growth, both editable. Growth does not affect the first-year results here.