US House Hacking Profitability Calculator
Estimate the financial performance of a house-hacking scenario in the U.S. using transparent, documented formulas (NOI, cap rate, cash flow, cash-on-cash return). Includes input validation, sensitivity parameters, scenarios, and author/methodology details.
- Page updated:
- Jul 14, 2026
- Tool version:
- v1.1.0
Overview
This calculator estimates the financial outcomes of a house-hacking scenario using transparent, standard real estate formulas. Outputs include gross and effective income, operating expenses, net operating income (NOI), annual debt service, annual pre-tax cash flow, capitalization rate, and cash-on-cash return.
Use conservative inputs and adjust vacancy, maintenance, and management assumptions to model realistic scenarios.
Results
Gross annual rental income
$18,000.00
Effective gross income
$17,100.00
Annual operating expenses
$6,923.00
Net Operating Income (NOI)
$10,177.00
Loan amount (internal)
$240,000.00
Monthly interest rate (internal)
0.0038
Number of monthly payments (internal)
360
Monthly mortgage payment (internal)
—
Annual debt service
—
Annual pre-tax cash flow
—
Capitalization rate
—
Total initial investment
$65,000.00
Cash-on-cash return
—
How to read the result
- What it means
- The displayed value is an estimate based on your inputs. It represents the calculated scenario under current assumptions, not a guaranteed amount.
- Calculation limits
- The model uses simplified formulas and cannot account for all variables in your specific case (local regulations, personal conditions, temporal changes).
- Next step
- Use the result as a starting point. Adjust parameters to compare scenarios and validate with a professional when needed.
Glossary+−
- Net Operating Income (NOI)
Effective gross income minus annual operating expenses (before debt service and taxes).
- Capitalization rate (cap rate)
NOI divided by purchase price; a measure of property yield independent of financing.
- Cash-on-cash return
Pre-tax annual cash flow divided by total initial cash invested (down payment + closing & rehab costs).
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Worked examples
Example: Rental Property in New York (recomputed)
Purchase price $300,000, monthly rent $1,500, down payment 20%, interest 4.5% 30-year, vacancy 5%, maintenance 2% (of effective gross income), property tax $3,000.
Frequently asked questions
How are mortgage payments calculated?
Monthly mortgage payments use the standard amortization formula: payment = P × (r / (1 − (1 + r)^(−n))) where P is the loan amount, r is monthly interest rate, and n is total number of monthly payments. If the interest rate is 0, payments are computed as P / n.
Does this consider taxes or depreciation?
No. This calculator presents pre-tax operating results. Tax effects (income tax, depreciation schedules) are intentionally omitted — consult a tax professional for after-tax projections.
Where do your assumptions come from?
Formulas reflect standard real estate underwriting practices. Interest amortization is standard financial math. For tax guidance, see IRS resources: https://www.irs.gov.
Sources & references
- IRS - Internal Revenue Service: https://www.irs.gov
- Mortgage Amortization Formula Reference: https://en.wikipedia.org/wiki/Amortization_calculator
Quality & oversight
- Author
- Ugo Candido, MBA
- Maintained by
- Ugo Candido, MBA
- Page updated
- Jul 14, 2026
- Tool version
- v1.1.0