Free tool · 2026
ADU ROI & rent calculator
Will an ADU actually pencil out on your lot? Pick your city, set the size and financing, and see real cash flow, cap rate, cash-on-cash return, and payback — adjusted for your Sacramento-region submarket. Already have a quote and a rent comp? Drop them in for an exact read.
ADU ROI & rent estimator
See cash flow, cap rate, cash-on-cash, and payback for an income ADU in your submarket.
Auto: $229,000 (Sacramento)
Auto: $2,150/mo
Monthly cash flow
$2,150/mo rent − $1,281 payment − $485 taxes/ins/maint
Estimates only — 2026 regional assumptions (≈1.15% tax, $900/yr insurance, 1% maintenance, 30-yr loan). Not a bid or financial advice. Confirm with a lender and a feasibility check.
How to read your ADU return
Cash flow is what lands in your pocket each month after the loan payment and holding costs. Cap rate measures the unit's return independent of financing (net operating income ÷ build cost) — useful for comparing submarkets. Cash-on-cash divides annual cash flow by the actual cash you invested, so a smaller down payment can raise it. Payback is how long net rent takes to recover the build — and it understates true return, because it ignores appreciation and the resale-value lift a permitted ADU adds.
See the full payback method and rent ranges in our ADU rental income & ROI guide, estimate build cost on the cost calculator, or compare ADU cost by city.
ADU ROI calculator — FAQs
ADU ROI combines three returns: monthly cash flow (rent minus the financed payment and holding costs), cap rate (annual net operating income ÷ build cost), and cash-on-cash (annual cash flow ÷ the cash you put in). This calculator estimates all three for your city, size, and financing in 2026.
Sacramento-region ADUs commonly pencil out around a 5–8% cap rate depending on submarket and build cost. Lower-land-cost cities like Galt, Woodland, and Citrus Heights tend to run highest; premium foothill submarkets run lower but add more resale value.
A typical $250,000 Sacramento ADU pays back its cost in roughly 8–12 years on net rent, before appreciation and the resale-value premium. Higher rent and low vacancy shorten payback; holding costs like property tax and insurance lengthen it.
The estimate assumes about 1.15% of build value per year in added property tax, ~$900/year landlord insurance, and ~1% of build cost per year in maintenance — plus your financed loan payment. Vacancy isn't modeled, so stress-test with a conservative rent.
See what your backyard could earn
Get a transparent, all-in quote and a real rent comp for your specific lot and submarket.