Rental Property Cash Flow Calculator
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max-width: 800px;
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border: 1px solid #e0e0e0;
border-radius: 8px;
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Rental Property Cash Flow Calculator
Analysis Results
Loan Amount:
$0.00
Monthly Principal & Interest:
$0.00
Total Monthly Expenses:
$0.00
Monthly Cash Flow:
$0.00
Annual Cash Flow:
$0.00
Total Cash Invested:
$0.00
Cash on Cash Return (ROI):
0.00%
function calculateCashFlow() {
// Get Inputs
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value);
var closingCosts = parseFloat(document.getElementById('closingCosts').value);
var downPaymentPercent = parseFloat(document.getElementById('downPaymentPercent').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var loanTerm = parseFloat(document.getElementById('loanTerm').value);
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value);
var propertyTax = parseFloat(document.getElementById('propertyTax').value);
var insurance = parseFloat(document.getElementById('insurance').value);
var hoa = parseFloat(document.getElementById('hoa').value);
// Validation
if (isNaN(purchasePrice) || isNaN(interestRate) || isNaN(loanTerm) || isNaN(monthlyRent)) {
alert("Please enter valid numbers for all required fields.");
return;
}
// Set default values for optional fields if empty
if (isNaN(closingCosts)) closingCosts = 0;
if (isNaN(downPaymentPercent)) downPaymentPercent = 0;
if (isNaN(propertyTax)) propertyTax = 0;
if (isNaN(insurance)) insurance = 0;
if (isNaN(hoa)) hoa = 0;
// Calculations
var downPaymentAmount = purchasePrice * (downPaymentPercent / 100);
var loanAmount = purchasePrice – downPaymentAmount;
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
// Mortgage Calculation
var monthlyMortgage = 0;
if (interestRate === 0) {
monthlyMortgage = loanAmount / numberOfPayments;
} else {
monthlyMortgage = (loanAmount * monthlyRate) / (1 – Math.pow(1 + monthlyRate, -numberOfPayments));
}
var totalMonthlyExpenses = monthlyMortgage + propertyTax + insurance + hoa;
var monthlyCashFlow = monthlyRent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
var totalInvested = downPaymentAmount + closingCosts;
// ROI Calculations
var cashOnCash = 0;
if (totalInvested > 0) {
cashOnCash = (annualCashFlow / totalInvested) * 100;
}
// Display Results
document.getElementById('resLoanAmount').innerHTML = '$' + loanAmount.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resMortgage').innerHTML = '$' + monthlyMortgage.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTotalExpenses').innerHTML = '$' + totalMonthlyExpenses.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
var monthlyCashFlowEl = document.getElementById('resMonthlyCashFlow');
monthlyCashFlowEl.innerHTML = '$' + monthlyCashFlow.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
if (monthlyCashFlow < 0) {
monthlyCashFlowEl.classList.add('rp-negative');
monthlyCashFlowEl.classList.remove('rp-highlight');
} else {
monthlyCashFlowEl.classList.remove('rp-negative');
monthlyCashFlowEl.classList.add('rp-highlight');
}
var annualCashFlowEl = document.getElementById('resAnnualCashFlow');
annualCashFlowEl.innerHTML = '$' + annualCashFlow.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
if (annualCashFlow < 0) annualCashFlowEl.classList.add('rp-negative');
else annualCashFlowEl.classList.remove('rp-negative');
document.getElementById('resTotalInvested').innerHTML = '$' + totalInvested.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
var cashOnCashEl = document.getElementById('resCashOnCash');
cashOnCashEl.innerHTML = cashOnCash.toFixed(2) + '%';
if (cashOnCash < 0) {
cashOnCashEl.classList.add('rp-negative');
cashOnCashEl.classList.remove('rp-highlight');
} else {
cashOnCashEl.classList.remove('rp-negative');
cashOnCashEl.classList.add('rp-highlight');
}
// Show result div
document.getElementById('rpResults').style.display = 'block';
}
How to Use This Rental Property Cash Flow Calculator
Calculating the potential return on a real estate investment is crucial before signing any purchase agreement. This Rental Property Cash Flow Calculator helps investors analyze deals quickly by determining the monthly cash flow and Cash on Cash Return (CoC ROI).
Step-by-Step Instructions
- Purchase Price: Enter the total cost of the property.
- Closing Costs: Estimate costs such as title fees, inspections, and loan origination fees (typically 2-5% of the purchase price).
- Down Payment (%): The percentage of the purchase price you are paying upfront.
- Loan Details: Input your expected interest rate and the term of the mortgage (usually 30 years).
- Income & Expenses: Enter the expected monthly rent and your recurring monthly costs, including property taxes, insurance, and HOA fees.
Why Cash Flow is King in Real Estate
Cash flow is the profit remaining after all expenses are paid. A positive cash flow ensures that the property pays for itself and generates income for you. Negative cash flow means you are losing money every month to hold the asset.
Successful investors typically look for properties that offer a positive cash flow from day one, providing a safety buffer against vacancies or unexpected repairs.
Understanding Cash on Cash Return
While cash flow tells you how much money you make monthly, Cash on Cash Return tells you how hard your money is working. It is calculated by dividing your annual pre-tax cash flow by the total cash invested.
Formula: (Annual Cash Flow / Total Cash Invested) x 100
For example, if you invest $50,000 to buy a house and it generates $5,000 in net profit per year, your Cash on Cash return is 10%.
Common Expenses to Watch Out For
When estimating expenses, novice investors often overlook several key categories. Ensure you account for:
- Vacancy Rates: Assume the property will sit empty for a certain percentage of the year (usually 5-8%).
- CapEx (Capital Expenditures): Set aside money for big-ticket items like roof replacement or HVAC repairs.
- Property Management: If you don't plan to be a landlord yourself, budget 8-10% of the rent for a management company.
Frequently Asked Questions
What is a good Cash on Cash return?
While it varies by market, many investors aim for an 8-12% Cash on Cash return. In highly appreciative markets, investors might accept lower returns (4-6%), while in stable cash-flow markets, they might demand 15% or more.
Does this calculator include principal paydown?
This calculator focuses on cash flow. While principal paydown contributes to your net worth and total ROI, it does not put cash in your pocket monthly, so it is excluded from the Cash on Cash calculation.