Analyze your real estate investment performance instantly.
Purchase Information
Loan Details
Rental Income & Expenses
Total Initial Cash Invested:$0.00
Monthly Mortgage Payment (P&I):$0.00
Total Monthly Expenses:$0.00
Net Operating Income (NOI) / Mo:$0.00
Monthly Cash Flow:$0.00
Cap Rate:0.00%
Cash on Cash Return (ROI):0.00%
Understanding Rental Property Analysis
Successfully investing in real estate requires more than just finding a property; it requires a deep dive into the numbers. This Rental Property Cash Flow Calculator helps investors determine if a potential property will generate positive income or become a financial drain. By inputting detailed metrics regarding the mortgage, income, and operating expenses, you can derive the three most critical KPIs for real estate investors: Cash Flow, Cap Rate, and Cash on Cash Return.
Key Metrics Explained
Cash Flow: This is the net profit you pocket every month after all expenses and mortgage payments are made. Positive cash flow is essential for long-term sustainability.
Net Operating Income (NOI): This represents the profitability of the property before factoring in the mortgage. It is calculated as Gross Income – Operating Expenses.
Cap Rate (Capitalization Rate): Calculated as NOI / Purchase Price, this percentage helps you compare the raw return potential of a property without considering financing. It represents the return if you bought the property in cash.
Cash on Cash Return (CoC ROI): This is arguably the most important metric for leveraged investors. It measures the annual cash flow relative to the actual cash you invested (Down Payment + Closing Costs + Rehab).
How to Use This Calculator
Begin by entering the purchase price and your financing details. Don't forget to include estimates for vacancy (periods where the unit is empty) and maintenance, as these are often overlooked by new investors. A "good" deal typically looks for a positive cash flow of $100-$300 per door and a Cash on Cash return that exceeds the stock market average (typically 8-12%).
function calculateRentalProperty() {
// 1. Get Input Values
var price = parseFloat(document.getElementById('rpc-price').value) || 0;
var downPercent = parseFloat(document.getElementById('rpc-down-percent').value) || 0;
var closingCosts = parseFloat(document.getElementById('rpc-closing-costs').value) || 0;
var rehabCosts = parseFloat(document.getElementById('rpc-rehab').value) || 0;
var interestRate = parseFloat(document.getElementById('rpc-interest').value) || 0;
var termYears = parseFloat(document.getElementById('rpc-term').value) || 0;
var rent = parseFloat(document.getElementById('rpc-rent').value) || 0;
var vacancyRate = parseFloat(document.getElementById('rpc-vacancy').value) || 0;
var propertyTaxYearly = parseFloat(document.getElementById('rpc-tax').value) || 0;
var insuranceYearly = parseFloat(document.getElementById('rpc-insurance').value) || 0;
var hoaMonthly = parseFloat(document.getElementById('rpc-hoa').value) || 0;
var maintenanceMonthly = parseFloat(document.getElementById('rpc-maintenance').value) || 0;
// 2. Calculate Initial Investment
var downPayment = price * (downPercent / 100);
var loanAmount = price – downPayment;
var totalCashInvested = downPayment + closingCosts + rehabCosts;
// 3. Calculate Mortgage Payment (Monthly P&I)
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = termYears * 12;
var mortgagePayment = 0;
if (interestRate > 0) {
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else {
mortgagePayment = loanAmount / numberOfPayments;
}
// 4. Calculate Income and Expenses
var vacancyLoss = rent * (vacancyRate / 100);
var effectiveGrossIncome = rent – vacancyLoss;
var monthlyTax = propertyTaxYearly / 12;
var monthlyInsurance = insuranceYearly / 12;
var totalOperatingExpenses = monthlyTax + monthlyInsurance + hoaMonthly + maintenanceMonthly;
// 5. Calculate Metrics
var noiMonthly = effectiveGrossIncome – totalOperatingExpenses;
var noiAnnual = noiMonthly * 12;
var cashFlowMonthly = noiMonthly – mortgagePayment;
var cashFlowAnnual = cashFlowMonthly * 12;
var capRate = 0;
if (price > 0) {
capRate = (noiAnnual / price) * 100;
}
var cashOnCash = 0;
if (totalCashInvested > 0) {
cashOnCash = (cashFlowAnnual / totalCashInvested) * 100;
}
// 6. Format and Display Results
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
document.getElementById('res-cash-invested').innerText = formatter.format(totalCashInvested);
document.getElementById('res-mortgage').innerText = formatter.format(mortgagePayment);
// Total Monthly Expenses shown to user usually includes P&I + Operating for clarity in some views,
// but strictly speaking expenses = operating. Let's show Operating + Mortgage = Total Outflow
document.getElementById('res-expenses').innerText = formatter.format(totalOperatingExpenses + mortgagePayment);
document.getElementById('res-noi').innerText = formatter.format(noiMonthly);
document.getElementById('res-cashflow').innerText = formatter.format(cashFlowMonthly);
// Color code cash flow
var cashFlowEl = document.getElementById('res-cashflow');
if (cashFlowMonthly >= 0) {
cashFlowEl.style.color = '#27ae60';
} else {
cashFlowEl.style.color = '#c0392b';
}
document.getElementById('res-cap-rate').innerText = capRate.toFixed(2) + '%';
document.getElementById('res-coc').innerText = cashOnCash.toFixed(2) + '%';
// Show results container
document.getElementById('rpc-results').style.display = 'block';
}