How to Calculate Interest Rate on Loan Payment

.rental-calculator-wrapper { font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; max-width: 800px; margin: 0 auto; padding: 20px; background: #f9f9f9; border: 1px solid #e0e0e0; border-radius: 8px; } .rc-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 20px; margin-bottom: 25px; } .rc-col { display: flex; flex-direction: column; } .rental-calculator-wrapper label { font-weight: 600; margin-bottom: 5px; color: #333; font-size: 14px; } .rental-calculator-wrapper input { padding: 10px; border: 1px solid #ccc; border-radius: 4px; font-size: 16px; width: 100%; box-sizing: border-box; } .rental-calculator-wrapper input:focus { border-color: #2c3e50; outline: none; } .rc-section-title { grid-column: 1 / -1; font-size: 18px; font-weight: bold; color: #2c3e50; margin-top: 10px; border-bottom: 2px solid #ddd; padding-bottom: 5px; } .rc-btn { grid-column: 1 / -1; background-color: #27ae60; color: white; border: none; padding: 15px; font-size: 18px; font-weight: bold; border-radius: 4px; cursor: pointer; transition: background-color 0.3s; margin-top: 10px; } .rc-btn:hover { background-color: #219150; } .rc-results { margin-top: 30px; background: white; padding: 20px; border-radius: 6px; border-left: 5px solid #27ae60; display: none; } .rc-result-row { display: flex; justify-content: space-between; margin-bottom: 10px; padding-bottom: 10px; border-bottom: 1px solid #eee; } .rc-result-row:last-child { border-bottom: none; } .rc-result-label { color: #555; } .rc-result-value { font-weight: bold; color: #2c3e50; } .rc-big-result { font-size: 24px; color: #27ae60; } @media (max-width: 600px) { .rc-grid { grid-template-columns: 1fr; } } .seo-content { margin-top: 40px; line-height: 1.6; color: #333; } .seo-content h2 { color: #2c3e50; margin-top: 30px; } .seo-content h3 { color: #34495e; } .seo-content ul { margin-left: 20px; }

Rental Property Cash Flow Calculator

Purchase Information
Income & Expenses
Monthly Mortgage Payment (P&I):
Total Monthly Expenses:
Net Operating Income (NOI) / Mo:
Monthly Cash Flow:
Annual Cash Flow:
Cash on Cash Return (CoC):
Cap Rate:

How to Analyze a Rental Property Investment

Investing in real estate is a numbers game. To succeed, you must remove emotion from the equation and focus strictly on the data. This Rental Property Cash Flow Calculator is designed to help investors determine the viability of a potential deal by analyzing key metrics like Cash Flow, Net Operating Income (NOI), and Cash on Cash Return.

Key Metrics Explained

1. Monthly Cash Flow

This is your "take-home" money after all expenses are paid. It is calculated as:

  • Total Income (Rent) minus Total Expenses (Mortgage, Taxes, Insurance, Maintenance, Vacancy, Management).

Positive cash flow is essential for a sustainable long-term investment. A common goal for beginners is $200-$300 per door in net positive cash flow.

2. Net Operating Income (NOI)

NOI measures the profitability of an income-generating property before adding in any financing costs or taxes. It helps you compare properties regardless of how they are financed.

Formula: (Rental Income – Operating Expenses). Note: Mortgage payments are NOT included in NOI.

3. Cash on Cash Return (CoC)

This metric tells you how hard your actual invested cash is working. If you put $50,000 down on a house and it generates $5,000 in annual profit, your CoC is 10%.

Formula: (Annual Cash Flow / Total Cash Invested) * 100.

Estimating Expenses Accurately

One of the biggest mistakes new investors make is underestimating expenses. Always account for:

  • Vacancy: Even in hot markets, tenants move out. Budget 5-8% of rent.
  • Maintenance: Things break. Budget 5-10% of rent for repairs (roof, HVAC, plumbing).
  • CapEx: Set aside money for major capital expenditures in the future.

Using the Calculator

Input your purchase details above. Be realistic with your rental income estimates by checking comparable properties in the area (comps). If the Cash Flow is negative, the deal is likely a liability, not an asset, unless you are banking purely on appreciation (which is risky).

function calculateRental() { // 1. Get Inputs var price = parseFloat(document.getElementById('rcPurchasePrice').value); var downPercent = parseFloat(document.getElementById('rcDownPayment').value); var interestRate = parseFloat(document.getElementById('rcInterestRate').value); var termYears = parseFloat(document.getElementById('rcLoanTerm').value); var closingCosts = parseFloat(document.getElementById('rcClosingCosts').value); var rent = parseFloat(document.getElementById('rcMonthlyRent').value); var annualTax = parseFloat(document.getElementById('rcPropertyTax').value); var annualIns = parseFloat(document.getElementById('rcInsurance').value); var monthlyHOA = parseFloat(document.getElementById('rcHOA').value); var vacancyRate = parseFloat(document.getElementById('rcVacancy').value); var maintRate = parseFloat(document.getElementById('rcMaintenance').value); var mgmtRate = parseFloat(document.getElementById('rcManagement').value); // Validation if (isNaN(price) || isNaN(rent) || price 0) { cocReturn = (annualCashFlow / totalCashInvested) * 100; } var capRate = 0; if (price > 0) { capRate = (annualNOI / price) * 100; } // 5. Display Results document.getElementById('resMortgage').innerText = "$" + monthlyMortgage.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resExpenses').innerText = "$" + totalMonthlyExpensesWithMortgage.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resNOI').innerText = "$" + monthlyNOI.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}); var cfElement = document.getElementById('resCashFlow'); cfElement.innerText = "$" + monthlyCashFlow.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}); // Color coding for cash flow if (monthlyCashFlow >= 0) { cfElement.style.color = "#27ae60"; } else { cfElement.style.color = "#c0392b"; } document.getElementById('resAnnualCF').innerText = "$" + annualCashFlow.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resCoC').innerText = cocReturn.toFixed(2) + "%"; document.getElementById('resCapRate').innerText = capRate.toFixed(2) + "%"; // Show result section document.getElementById('rcResults').style.display = "block"; // Smooth scroll to results document.getElementById('rcResults').scrollIntoView({ behavior: 'smooth' }); }

Leave a Comment