Rental Property Cash Flow Calculator
.rp-calc-container {
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margin: 20px auto;
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Please enter valid numeric values in all fields.
Monthly Mortgage P&I:
$0.00
Total Monthly Expenses:
$0.00
Net Operating Income (Monthly):
$0.00
Monthly Cash Flow:
$0.00
Cash on Cash Return (Annual):
0.00%
Cap Rate:
0.00%
Understanding Your Rental Property Investment
Investing in real estate is one of the most reliable ways to build wealth, but simply buying a property and renting it out doesn't guarantee profit. This Rental Property Cash Flow Calculator helps you analyze the numbers to ensure your investment generates positive monthly income rather than draining your bank account.
Key Metrics Explained
- Cash Flow: This is your profit after all expenses (mortgage, taxes, insurance, repairs, vacancy) are paid. Positive cash flow is essential for a sustainable long-term investment.
- Cash on Cash Return (CoC): This metric measures the annual return on the actual cash you invested (down payment + closing costs). It is often considered the most important metric for buy-and-hold investors. A CoC of 8-12% is generally considered good in many markets.
- Net Operating Income (NOI): This represents the profitability of the property itself before financing costs. It is calculated as Total Income minus Operating Expenses (excluding mortgage payments).
- Cap Rate: The Capitalization Rate is the ratio of NOI to the property's purchase price. It helps compare the profitability of different properties regardless of how they are financed.
How to Maximize Your Cash Flow
If your calculation shows negative or low cash flow, consider these strategies:
1. Increase Rent: Ensure you are charging market rates. Small improvements like fresh paint or modern fixtures can justify higher rent.
2. Reduce Operating Costs: Shop around for cheaper insurance, challenge property tax assessments if they seem high, or manage the property yourself to save on management fees.
3. Larger Down Payment: Putting more money down reduces your loan amount and monthly mortgage payment, instantly boosting monthly cash flow, though it may lower your Cash on Cash return.
Common Expenses Investors Overlook
When using this calculator, ensure you account for "hidden" costs. Vacancy (months where the property sits empty), Maintenance (saving for a new roof or HVAC), and Capital Expenditures (CapEx) are real costs that must be budgeted for, even if they don't occur every month.
function calculateCashFlow() {
// 1. Get Input Values
var price = parseFloat(document.getElementById('rp_price').value);
var downPercent = parseFloat(document.getElementById('rp_down').value);
var ratePercent = parseFloat(document.getElementById('rp_rate').value);
var years = parseFloat(document.getElementById('rp_term').value);
var monthlyRent = parseFloat(document.getElementById('rp_rent').value);
var annualTax = parseFloat(document.getElementById('rp_tax').value);
var annualIns = parseFloat(document.getElementById('rp_ins').value);
var monthlyHoa = parseFloat(document.getElementById('rp_hoa').value);
var vacancyPercent = parseFloat(document.getElementById('rp_vac').value);
var maintPercent = parseFloat(document.getElementById('rp_maint').value);
var mgmtPercent = parseFloat(document.getElementById('rp_mgmt').value);
// 2. Validate Inputs
if (isNaN(price) || isNaN(downPercent) || isNaN(ratePercent) || isNaN(years) ||
isNaN(monthlyRent) || isNaN(annualTax) || isNaN(annualIns) || isNaN(monthlyHoa)) {
document.getElementById('rp_error').style.display = 'block';
document.getElementById('rp_results').style.display = 'none';
return;
}
document.getElementById('rp_error').style.display = 'none';
// 3. Calculate Mortgage
var downPayment = price * (downPercent / 100);
var loanAmount = price – downPayment;
var monthlyRate = (ratePercent / 100) / 12;
var totalPayments = years * 12;
// Mortgage formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
var monthlyMortgage = 0;
if (monthlyRate > 0) {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, totalPayments)) / (Math.pow(1 + monthlyRate, totalPayments) – 1);
} else {
monthlyMortgage = loanAmount / totalPayments;
}
// 4. Calculate Operating Expenses
var monthlyTax = annualTax / 12;
var monthlyIns = annualIns / 12;
var monthlyVacancyCost = monthlyRent * (vacancyPercent / 100);
var monthlyMaintCost = monthlyRent * (maintPercent / 100);
var monthlyMgmtCost = monthlyRent * (mgmtPercent / 100);
// Total Operating Expenses (Does NOT include Mortgage for NOI, but DOES for Cash Flow)
var operatingExpenses = monthlyTax + monthlyIns + monthlyHoa + monthlyVacancyCost + monthlyMaintCost + monthlyMgmtCost;
// Total Expenses for Cash Flow
var totalExpenses = operatingExpenses + monthlyMortgage;
// 5. Calculate Metrics
// Net Operating Income (NOI) = Income – Operating Expenses (No Mortgage)
var monthlyNOI = monthlyRent – operatingExpenses;
var annualNOI = monthlyNOI * 12;
// Cash Flow = Income – Total Expenses (With Mortgage)
var monthlyCashFlow = monthlyRent – totalExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// Cash Invested (Down Payment + estimated Closing Costs 3%)
// For simplicity, we stick to Down Payment, but let's assume 2% closing costs for better realism
var closingCosts = price * 0.02;
var totalCashInvested = downPayment + closingCosts;
// Cash on Cash Return
var cocReturn = (annualCashFlow / totalCashInvested) * 100;
// Cap Rate = Annual NOI / Purchase Price
var capRate = (annualNOI / price) * 100;
// 6. Update DOM
document.getElementById('res_mortgage').innerHTML = '$' + monthlyMortgage.toFixed(2);
// Display total expenses including mortgage
document.getElementById('res_expenses').innerHTML = '$' + totalExpenses.toFixed(2);
document.getElementById('res_noi').innerHTML = '$' + monthlyNOI.toFixed(2);
var cfElement = document.getElementById('res_cashflow');
cfElement.innerHTML = '$' + monthlyCashFlow.toFixed(2);
if(monthlyCashFlow >= 0) {
cfElement.style.color = '#27ae60';
} else {
cfElement.style.color = '#e53e3e';
}
var cocElement = document.getElementById('res_coc');
cocElement.innerHTML = cocReturn.toFixed(2) + '%';
if(cocReturn >= 0) {
cocElement.style.color = '#27ae60';
} else {
cocElement.style.color = '#e53e3e';
}
document.getElementById('res_cap').innerHTML = capRate.toFixed(2) + '%';
// Show Results
document.getElementById('rp_results').style.display = 'block';
}