How to Calculate Bank Interest Rate per Month

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Rental Property Cash Flow Calculator .calc-input { width: 100%; padding: 0.75rem; border: 1px solid #d1d5db; border-radius: 0.375rem; margin-top: 0.25rem; transition: border-color 0.2s; } .calc-input:focus { outline: none; border-color: #3b82f6; box-shadow: 0 0 0 3px rgba(59, 130, 246, 0.1); } .result-card { background-color: #f3f4f6; padding: 1rem; border-radius: 0.5rem; text-align: center; } .result-value { font-size: 1.5rem; font-weight: 700; color: #1f2937; } .result-label { font-size: 0.875rem; color: #4b5563; margin-top: 0.25rem; }

Rental Property Cash Flow Calculator

Analyze potential real estate investments, calculate Cap Rate, and estimate monthly cash flow.

Property & Loan Details

Income & Expenses

Investment Analysis

$0.00
Monthly Cash Flow
$0.00%
Cash on Cash Return
Net Operating Income (NOI) $0.00
Cap Rate 0.00%
Monthly Mortgage (P&I) $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 long-term wealth, but success hinges on the numbers. A Rental Property Cash Flow Calculator is an essential tool for investors to determine if a property will generate income (positive cash flow) or cost money to hold (negative cash flow).

How to Interpret the Results

1. Monthly Cash Flow

This is your profit after all expenses are paid. It is calculated by taking your total monthly rental income and subtracting all operating expenses and debt service (mortgage payments).
Formula: Income – (Operating Expenses + Mortgage Payment)

2. Cash on Cash Return (CoC)

This metric measures the annual return on the actual cash you invested (down payment + closing costs + rehab costs). It is often considered the most important metric for financing investors. A CoC of 8-12% is often considered a solid target for residential rentals.

3. Cap Rate (Capitalization Rate)

Cap Rate measures the natural rate of return of the property assuming you paid all cash. It helps you compare properties regardless of financing.
Formula: Net Operating Income (NOI) / Purchase Price

Example Scenario

Imagine purchasing a single-family home for $200,000 with a 20% down payment ($40,000). You rent it out for $1,800/month.

  • Mortgage (Principal & Interest): Approx. $1,011 (at 6.5% interest)
  • Taxes & Insurance: $350/month
  • Maintenance & Vacancy Reserves: $200/month
  • Total Expenses: $1,561
  • Cash Flow: $1,800 – $1,561 = $239/month

In this scenario, the property pays for itself and provides an extra $239 in your pocket every month, in addition to principal paydown and appreciation.

Frequently Asked Questions

What is a good cash on cash return for rental property?

While this varies by market and strategy, many investors aim for a Cash on Cash return between 8% and 12%. In highly appreciative markets, investors might accept lower cash flow (4-6%), while in stable cash-flow markets, they might demand 12% or higher.

Should I include vacancy rate in my calculation?

Yes. Even if a property is currently rented, it will not be occupied 100% of the time over 10 years. A standard vacancy allowance is 5% to 8% of the gross rent to account for turnover periods.

What is the difference between ROI and Cap Rate?

Cap Rate evaluates the profitability of the property itself, excluding financing. ROI (or Cash on Cash Return) evaluates the profitability of your specific investment, factoring in the leverage (mortgage) you used to buy it.
function calculateRental() { // 1. Get Inputs var price = parseFloat(document.getElementById('purchasePrice').value); var downPaymentPercent = parseFloat(document.getElementById('downPayment').value); var interestRate = parseFloat(document.getElementById('interestRate').value); var loanTermYears = parseFloat(document.getElementById('loanTerm').value); var monthlyRent = parseFloat(document.getElementById('monthlyRent').value); var annualTax = parseFloat(document.getElementById('annualTax').value); var annualInsurance = parseFloat(document.getElementById('annualInsurance').value); var monthlyHOA = parseFloat(document.getElementById('monthlyHOA').value); var vacancyRate = parseFloat(document.getElementById('vacancyRate').value); var errorMsg = document.getElementById('errorMsg'); // 2. Validate Inputs if (isNaN(price) || isNaN(monthlyRent) || price 0 && interestRate > 0) { monthlyPrincipalAndInterest = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1); } else if (loanAmount > 0 && interestRate === 0) { monthlyPrincipalAndInterest = loanAmount / numberOfPayments; } // Operating Expenses var monthlyTax = annualTax / 12; var monthlyInsurance = annualInsurance / 12; var vacancyCost = monthlyRent * (vacancyRate / 100); var totalMonthlyOperatingExpenses = monthlyTax + monthlyInsurance + monthlyHOA + vacancyCost; var totalMonthlyExpenses = totalMonthlyOperatingExpenses + monthlyPrincipalAndInterest; // Income Metrics var noiMonthly = monthlyRent – totalMonthlyOperatingExpenses; var annualNOI = noiMonthly * 12; var monthlyCashFlow = monthlyRent – totalMonthlyExpenses; var annualCashFlow = monthlyCashFlow * 12; // Returns var capRate = (annualNOI / price) * 100; // Cash on Cash: Annual Cash Flow / Total Cash Invested // Assuming closing costs are roughly 2% of price for estimation simplicity in this calculator var closingCosts = price * 0.02; var totalCashInvested = downPaymentAmount + closingCosts; var cashOnCash = (annualCashFlow / totalCashInvested) * 100; // 5. Update UI // Format Currency Helper var formatCurrency = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 2 }); document.getElementById('monthlyCashFlow').innerText = formatCurrency.format(monthlyCashFlow); // Color coding for Cash Flow if(monthlyCashFlow >= 0) { document.getElementById('monthlyCashFlow').classList.remove('text-red-600'); document.getElementById('monthlyCashFlow').classList.add('text-green-600'); } else { document.getElementById('monthlyCashFlow').classList.remove('text-green-600'); document.getElementById('monthlyCashFlow').classList.add('text-red-600'); } document.getElementById('cashOnCash').innerText = cashOnCash.toFixed(2) + '%'; document.getElementById('annualNOI').innerText = formatCurrency.format(annualNOI); document.getElementById('capRate').innerText = capRate.toFixed(2) + '%'; document.getElementById('monthlyMortgage').innerText = formatCurrency.format(monthlyPrincipalAndInterest); document.getElementById('totalMonthlyExpenses').innerText = formatCurrency.format(totalMonthlyExpenses); } // Initial Calculation on load window.onload = function() { calculateRental(); };

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