Analyze your real estate investment potential instantly.
30 Years
15 Years
10 Years
Monthly Cash Flow
$0.00
Cash on Cash Return
0.00%
Cap Rate
0.00%
Net Operating Income (Yr)
$0.00
Monthly Income$0.00
Mortgage Payment (P&I)$0.00
Monthly Taxes & Insurance$0.00
Other Monthly Expenses$0.00
Total Monthly Expenses$0.00
Understanding Rental Property Cash Flow
Investing in real estate is one of the most reliable ways to build wealth, but simply buying a property doesn't guarantee profit. The key to a successful rental investment is positive cash flow. This calculator helps investors evaluate the potential profitability of a residential rental property by factoring in income, mortgage costs, and operating expenses.
Key Metrics Explained
Cash Flow: The net amount of money left in your pocket each month after all expenses (mortgage, taxes, insurance, repairs) are paid. Positive cash flow means the property is generating income; negative cash flow means it is costing you money to hold.
Cash on Cash Return (CoC): This metric measures the annual return on the actual cash you invested (down payment + closing costs). It is a crucial percentage for comparing real estate performance against other investments like stocks or bonds.
Cap Rate (Capitalization Rate): Calculated as Net Operating Income (NOI) divided by the property's purchase price. Cap rate helps evaluate the profitability of a property independently of how it is financed.
Net Operating Income (NOI): The total annual income generated by the property minus all operating expenses, excluding mortgage payments.
How to Improve Cash Flow
If your calculation shows negative or low cash flow, consider these strategies:
Increase Rent: Research local market rates to ensure you aren't undercharging.
Reduce Vacancy: Keep tenants happy and maintain the property to avoid turnover.
Refinance: Securing a lower interest rate or extending the loan term can significantly lower monthly mortgage payments.
Value-Add Renovations: Strategic upgrades can justify higher rent prices.
Using the Calculator
Enter your purchase details, financing terms, and estimated expenses. Be realistic with your expense estimates—don't forget to account for maintenance and potential vacancy periods. A conservative estimate is safer than an optimistic one when planning your investment portfolio.
function calculateCashFlow() {
// Get Inputs
var price = parseFloat(document.getElementById("rp_price").value) || 0;
var down = parseFloat(document.getElementById("rp_down").value) || 0;
var rate = parseFloat(document.getElementById("rp_rate").value) || 0;
var termYears = parseFloat(document.getElementById("rp_term").value) || 30;
var rent = parseFloat(document.getElementById("rp_rent").value) || 0;
var annualTax = parseFloat(document.getElementById("rp_tax").value) || 0;
var annualIns = parseFloat(document.getElementById("rp_ins").value) || 0;
var monthlyOther = parseFloat(document.getElementById("rp_expenses").value) || 0;
// Basic Validations
if (price 0) {
cocReturn = (annualCashFlow / down) * 100;
} else {
cocReturn = 0; // Infinite effectively, but display 0 or handle separately
}
// Display Results
document.getElementById("rp_results").style.display = "block";
// Format Helpers
function formatMoney(num) {
return "$" + num.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
}
function formatPercent(num) {
return num.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}) + "%";
}
// Set Values
var cashFlowEl = document.getElementById("res_cashflow");
cashFlowEl.innerText = formatMoney(monthlyCashFlow);
// Styling for positive/negative cash flow
if (monthlyCashFlow >= 0) {
cashFlowEl.className = "rp-result-value rp-highlight";
} else {
cashFlowEl.className = "rp-result-value rp-highlight-neg";
}
document.getElementById("res_coc").innerText = formatPercent(cocReturn);
document.getElementById("res_cap").innerText = formatPercent(capRate);
document.getElementById("res_noi").innerText = formatMoney(noi);
// Breakdown Table
document.getElementById("bd_income").innerText = formatMoney(rent);
document.getElementById("bd_mortgage").innerText = formatMoney(mortgagePayment);
document.getElementById("bd_taxins").innerText = formatMoney(monthlyTax + monthlyIns);
document.getElementById("bd_other").innerText = formatMoney(monthlyOther);
document.getElementById("bd_totalexp").innerText = formatMoney(totalMonthlyExpenses);
}