Royal Palms Realty · Property planning

Key West Rental ROI Calculator

Compare rental cash flow, cap rate, and cash-on-cash return using your rent, vacancy, financing, insurance and operating expense assumptions.

Example inputs only. Replace them with property-specific figures and quotes.

Purchase & financing

Purchase price ($)

Down payment (%)

Annual interest rate (%)

Loan term (years)

Acquisition closing costs ($)

Initial improvements & furnishings ($)

Rental income

Monthly rent at full occupancy ($)Use an annualized monthly average for seasonal rentals; exclude guest taxes and refundable deposits.

Vacancy / lost rent (%)

Management (% of collected rent)

Platform fees (% of collected rent)

Ownership & operations

Property taxes / year ($)Use an estimate for the new owner; the seller’s tax bill may differ.

Homeowners insurance / year ($)

Separate wind insurance / year ($)Enter zero if already included in homeowners insurance.

Flood insurance / year ($)

HOA / month ($)

Owner-paid utilities / month ($)

Maintenance / year ($)

Capital replacement reserves / year ($)

Other operating costs / year ($)Include owner-paid cleaning, licensing, mortgage insurance or other costs not entered above.

Estimated annual cash flow

-$32,519Based on your assumptions

Monthly cash flow: -$2,710
Cash-on-cash return: -13.84%
Cap rate (before debt and reserves): 3.12%
Potential annual rent: $78,000
Rent after vacancy: $70,200
Annual operating expenses: $39,040
Net operating income: $31,160
Annual mortgage payments: $60,679
Annual capital reserves: $3,000
Initial cash invested: $235,000

Planning estimates, not financing offers, settlement statements or guaranteed returns. Displayed dollar amounts are rounded.

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How this estimate works

Rent after vacancy = monthly rent × 12 × (1 − vacancy). Management and platform fees both apply to collected rent. Expenses are entered separately to avoid double counting.

Net operating income (NOI) = collected rent − operating expenses, before financing and capital reserves. Cap rate = NOI ÷ purchase price.

Annual cash flow = NOI − mortgage payments − capital reserves. Cash-on-cash return = annual cash flow ÷ (down payment + closing costs + initial improvements). A zero cash investment returns N/A.

This is a first-year, pre-income-tax operating estimate, not a total investment return. Appreciation, resale costs, equity paydown and tax benefits are excluded. Rental permissions, minimum stays, licensing and association rules must be verified for the specific property; projected income does not establish rental eligibility.

Frequently asked questions

How is cash-on-cash return different from cap rate?

Cash-on-cash compares annual cash flow after financing and reserves with your initial cash invested. Cap rate compares income before debt and reserves with the purchase price.

Can I estimate a seasonal rental?

Yes. Convert expected full-occupancy annual rent into a monthly average and apply a realistic vacancy assumption. Do not deduct vacancy twice if your income forecast already includes it.

Does a positive result mean the property can be rented?

No. Verify the property’s permitted use, licensing, minimum rental period and association restrictions before relying on a rental projection.

Put the numbers in context

Compare your assumptions with a specific home, its insurance quotes, association documents and financing terms. Explore Key West properties, browse ultra luxury Key West homes, or ask Scott about a property.