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Rental Property Cash Flow Calculator

Rental Property Cash Flow Calculator

Purchase & Loan Details

Income & Expenses

Financial Metrics

Monthly Cash Flow $0
Cash on Cash Return 0%
Cap Rate 0%
Net Operating Income (Annual) $0

Monthly Expense Breakdown

  • Mortgage Payment (P&I) $0
  • Property Tax $0
  • Insurance $0
  • Maintenance & CapEx $0
  • Vacancy Allowance $0
  • Management Fee $0
  • Total Monthly Expenses $0
function calculateRental() { // 1. Retrieve and Parse Inputs var price = parseFloat(document.getElementById('purchasePrice').value); var downPercent = parseFloat(document.getElementById('downPayment').value); var interestRate = parseFloat(document.getElementById('interestRate').value); var years = parseFloat(document.getElementById('loanTerm').value); var rent = parseFloat(document.getElementById('monthlyRent').value); var vacancyRate = parseFloat(document.getElementById('vacancyRate').value); var taxYearly = parseFloat(document.getElementById('propertyTax').value); var insYearly = parseFloat(document.getElementById('insurance').value); var maintYearly = parseFloat(document.getElementById('maintenance').value); var mgmtRate = parseFloat(document.getElementById('managementFee').value); // Validation if (isNaN(price) || isNaN(rent) || isNaN(interestRate)) { alert("Please enter valid numbers for all fields."); return; } // 2. Calculations // Loan Details var downAmount = price * (downPercent / 100); var loanAmount = price – downAmount; // Mortgage P&I var monthlyRate = (interestRate / 100) / 12; var numberOfPayments = years * 12; var mortgagePayment = 0; if (interestRate === 0) { mortgagePayment = loanAmount / numberOfPayments; } else { mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1); } // Monthly Expenses breakdown var monthlyTax = taxYearly / 12; var monthlyIns = insYearly / 12; var monthlyMaint = maintYearly / 12; var monthlyVacancy = rent * (vacancyRate / 100); var monthlyMgmt = rent * (mgmtRate / 100); var totalMonthlyExpenses = mortgagePayment + monthlyTax + monthlyIns + monthlyMaint + monthlyVacancy + monthlyMgmt; var operatingExpensesOnly = monthlyTax + monthlyIns + monthlyMaint + monthlyVacancy + monthlyMgmt; // Excluding mortgage // Metrics var monthlyCashFlow = rent – totalMonthlyExpenses; var annualCashFlow = monthlyCashFlow * 12; // NOI (Annual Rent – Annual Operating Expenses NOT including mortgage) var annualNOI = (rent * 12) – (operatingExpensesOnly * 12); // Cap Rate = Annual NOI / Purchase Price var capRate = (annualNOI / price) * 100; // Cash on Cash = Annual Cash Flow / Total Cash Invested (assuming just down payment for simplicity here) var cashOnCash = (annualCashFlow / downAmount) * 100; // 3. Update DOM document.getElementById('resultsArea').style.display = 'block'; // Formatting function var fmtMoney = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' }); var fmtPct = new Intl.NumberFormat('en-US', { style: 'percent', minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById('resCashFlow').innerText = fmtMoney.format(monthlyCashFlow); document.getElementById('resCashFlow').style.color = monthlyCashFlow >= 0 ? '#27ae60' : '#c0392b'; document.getElementById('resCoc').innerText = fmtPct.format(cashOnCash / 100); document.getElementById('resCoc').style.color = cashOnCash >= 0 ? '#3498db' : '#c0392b'; document.getElementById('resCapRate').innerText = fmtPct.format(capRate / 100); document.getElementById('resNoi').innerText = fmtMoney.format(annualNOI); // Breakdown table document.getElementById('breakdownMortgage').innerText = fmtMoney.format(mortgagePayment); document.getElementById('breakdownTax').innerText = fmtMoney.format(monthlyTax); document.getElementById('breakdownIns').innerText = fmtMoney.format(monthlyIns); document.getElementById('breakdownMaint').innerText = fmtMoney.format(monthlyMaint); document.getElementById('breakdownVacancy').innerText = fmtMoney.format(monthlyVacancy); document.getElementById('breakdownMgmt').innerText = fmtMoney.format(monthlyMgmt); document.getElementById('breakdownTotal').innerText = fmtMoney.format(totalMonthlyExpenses); }

Understanding Rental Property Cash Flow

Success in real estate investing ultimately boils down to the numbers. Unlike purchasing a primary residence, where emotions play a large role, buying an investment property is a business decision. The Rental Property Cash Flow Calculator helps you objectively analyze the potential profitability of a real estate asset before you sign on the dotted line.

What is Cash Flow?

Cash flow is the net amount of cash moving in and out of a business. In real estate, it represents the money left over from your rental income after all operating expenses and debt service (mortgage payments) have been paid. Positive cash flow means the property is generating income for you, while negative cash flow means the property is costing you money every month to hold.

The formula for Monthly Cash Flow is simple:

Cash Flow = Total Monthly Income – Total Monthly Expenses

Key Metrics Explained

  • Net Operating Income (NOI): This is your profitability before the mortgage is paid. It is calculated by subtracting operating expenses (taxes, insurance, maintenance, management) from your income. It is crucial for calculating the Cap Rate.
  • Cap Rate (Capitalization Rate): This metric helps you compare the return of a property assuming you bought it with all cash. It is calculated as NOI / Purchase Price. A higher Cap Rate generally indicates a better return, though often with higher risk.
  • Cash on Cash Return (CoC): This is arguably the most important metric for leveraged investors. It measures the cash income earned on the cash invested. It is calculated as Annual Cash Flow / Total Cash Invested (Down Payment + Closing Costs).

Why Include Vacancy and Maintenance?

Novice investors often make the mistake of calculating cash flow based solely on Rent minus Mortgage minus Taxes/Insurance. This "best-case scenario" math is dangerous.

You must account for:

  • Vacancy Rate: Your property will not be rented 365 days a year forever. A standard 5-8% vacancy allowance acts as a buffer for turnover periods.
  • Maintenance & CapEx: Roofs leak, water heaters break, and carpets wear out. Setting aside 10-15% of the rent annually ensures you have funds ready when repairs are needed, preserving your long-term returns.

Example Calculation

Let's say you purchase a property for $250,000 with a 20% down payment ($50,000). You rent it out for $2,200/month.

  • Mortgage Payment (at 6.5%): ~$1,264
  • Taxes & Insurance: ~$350
  • Maintenance & Vacancy Reserves: ~$300
  • Management Fee: ~$176

If your total expenses equal $2,090, your Monthly Cash Flow is $110. This results in a positive return, but allows you to see if the margin is too thin for your risk tolerance.

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