Hdfc Bank Car Loan Interest Rate Calculator

by

Rental Property Cash Flow Calculator

Analyze potential rental property investments by calculating monthly cash flow and annual returns.

Acquisition Info

Loan Financing

Income & Expenses

(Taxes, Insurance, HOA, Maintenance, Vacancy)

Financial Analysis Overview

Monthly Cash Flow

$0.00

Rental Income minus Total Outflow

Cash on Cash Return (CoC)

0.00%

Annual Cash Flow / Total Cash Invested

Detailed Breakdown

  • Monthly Principal & Interest: $0.00
  • Total Monthly Expenses (P&I + Operating): $0.00
  • Annual Cash Flow: $0.00
  • Total Cash Invested (Down Payment + Closing): $0.00
function calculateRentalCashFlow() { // Get input values var purchasePrice = parseFloat(document.getElementById('purchasePrice').value) || 0; var downPaymentPercent = parseFloat(document.getElementById('downPaymentPercent').value) || 0; var closingCosts = parseFloat(document.getElementById('closingCosts').value) || 0; var interestRate = parseFloat(document.getElementById('interestRate').value) || 0; var loanTermYears = parseFloat(document.getElementById('loanTerm').value) || 0; var rentalIncome = parseFloat(document.getElementById('rentalIncome').value) || 0; var monthlyOperatingExpenses = parseFloat(document.getElementById('monthlyExpenses').value) || 0; // Validate essential inputs if (purchasePrice <= 0 || loanTermYears 0) { var monthlyRate = (interestRate / 100) / 12; var totalPayments = loanTermYears * 12; // Standard mortgage formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ] monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, totalPayments)) / (Math.pow(1 + monthlyRate, totalPayments) – 1); } else { // Handle zero interest rate edge case monthlyMortgage = loanAmount / (loanTermYears * 12); } // Calculate Totals var totalMonthlyOutflow = monthlyMortgage + monthlyOperatingExpenses; var monthlyCashFlow = rentalIncome – totalMonthlyOutflow; var annualCashFlow = monthlyCashFlow * 12; // Calculate Cash on Cash Return var cashOnCashReturn = 0; if (totalCashInvested > 0) { cashOnCashReturn = (annualCashFlow / totalCashInvested) * 100; } // Display Results document.getElementById('calculationResults').style.display = 'block'; // Format currency and percentages var currencyFormatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' }); var percentFormatter = new Intl.NumberFormat('en-US', { style: 'percent', minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById('resultMonthlyMortgage').innerText = currencyFormatter.format(monthlyMortgage); document.getElementById('resultTotalExpenses').innerText = currencyFormatter.format(totalMonthlyOutflow); var mcfElement = document.getElementById('resultMonthlyCashFlow'); mcfElement.innerText = currencyFormatter.format(monthlyCashFlow); mcfElement.style.color = monthlyCashFlow >= 0 ? '#27ae60' : '#c0392b'; // Green if positive, red if negative document.getElementById('resultAnnualCashFlow').innerText = currencyFormatter.format(annualCashFlow); document.getElementById('resultTotalInvested').innerText = currencyFormatter.format(totalCashInvested); var cocElement = document.getElementById('resultCashOnCash'); cocElement.innerText = percentFormatter.format(cashOnCashReturn / 100); // Format expects decimal (0.10 for 10%) cocElement.style.color = cashOnCashReturn >= 0 ? '#2980b9' : '#c0392b'; }

Understanding Rental Property Cash Flow

Investing in real estate is one of the most reliable ways to build wealth, but success hinges on the numbers. The most critical metric for any buy-and-hold investor is cash flow. This calculator helps you determine if a potential rental property will put money in your pocket each month or take it out.

What is Cash Flow?

In the context of rental properties, cash flow is the net amount of cash moving into or out of an investment after all operating expenses and debt service (mortgage payments) have been paid. It is the profit you realize on a monthly basis.

  • Positive Cash Flow: The income generated by the property exceeds all expenses. This is the goal for most investors, as it provides passive income and a safety net for repairs.
  • Negative Cash Flow: The expenses of the property exceed the rental income. You are essentially paying out of pocket each month to hold the investment, banking entirely on future appreciation.

How to Use This Calculator

To get an accurate picture of your potential investment, you need to input realistic figures regarding acquisition, financing, and ongoing operations.

  1. Acquisition Info: Enter the total purchase price, your planned down payment percentage, and estimated closing costs. This determines your initial cash investment and the loan amount.
  2. Loan Financing: Input the interest rate and the term of the loan (typically 15 or 30 years). This calculates your monthly Principal & Interest (P&I) payment.
  3. Income & Expenses: Enter the gross monthly rental income. Crucially, estimate your "Other Monthly Expenses." Do not just include taxes and insurance. A realistic investor also budgets for:
    • Property Management fees (if applicable)
    • Maintenance and repairs reserves (e.g., 5-10% of rent)
    • Vacancy capital expenditures (CapEx) reserves (e.g., for a new roof or HVAC)
    • HOA fees and utilities paid by the landlord

Interpreting Key Metrics

Monthly Cash Flow

This is your gross rental income minus your total monthly outflow (mortgage P&I plus operating expenses). For example, if your property rents for $2,500, your mortgage is $1,500, and other expenses (taxes, insurance, reserves) total $600, your monthly cash flow is $400 ($2,500 – $2,100).

Cash on Cash Return (CoC)

While monthly cash flow tells you profit in dollars, Cash on Cash Return measures the return on the actual cash you invested. It is calculated as:

(Annual Cash Flow / Total Cash Invested) x 100

If you invested $70,000 total (down payment + closing costs) and the property generates $4,800 in annual cash flow ($400/month x 12), your CoC return is 6.85%. This metric allows you to compare the performance of a real estate investment against other potential uses for your cash, such as stocks or bonds.

Leave a Comment