Rental Property Cash Flow Calculator
Purchase Information
Income & Expenses
Est. Monthly Cash Flow
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Return Metrics
Cash on Cash Return (CoC)
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Cap Rate
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Net Operating Income (NOI/Mo)
$0.00
Expense Breakdown (Monthly)
Mortgage (P&I)
$0.00
Taxes & Insurance
$0.00
Vacancy & Repairs
$0.00
Total Expenses
$0.00
How to Analyze a Rental Property Investment
Successful real estate investing relies on accurate math, not just intuition. This Rental Property Cash Flow Calculator is designed to help investors evaluate the profitability of a potential buy-and-hold property. By inputting the purchase price, financing details, and operating expenses, you can determine if a property will generate positive income or drain your resources.
Understanding Key Real Estate Metrics
Monthly Cash Flow:
This is the profit you take home each month after paying all expenses, including the mortgage.
Formula: Rental Income – (Mortgage + Taxes + Insurance + HOA + Repairs + Vacancy)
Cash on Cash Return (CoC):
This metric measures the annual return on the actual cash you invested (down payment + closing costs), rather than the total loan amount. It effectively shows how hard your money is working for you.
Cap Rate (Capitalization Rate):
Cap Rate measures the natural rate of return of the property assuming you paid all cash (no mortgage). It helps you compare properties regardless of financing terms. A higher Cap Rate generally indicates a better return, though often comes with higher risk.
Why Factor in Vacancy and Maintenance?
Novice investors often make the mistake of calculating cash flow using only Rent minus Mortgage. This is dangerous. Realistically, tenants will move out (Vacancy) and things will break (Maintenance). Our calculator allows you to set aside a percentage of monthly rent for these inevitable costs. A standard rule of thumb is 5-10% for vacancy and 5-10% for maintenance, depending on the age of the property and the local market.
The 1% Rule
A quick screening tool used by many investors is the "1% Rule", which states that the monthly rent should be at least 1% of the purchase price. While this calculator provides a much more detailed analysis, properties that meet the 1% rule are more likely to generate positive cash flow in the current market environment.