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Rental Property Cash Flow Calculator

Monthly Income

Parking, laundry, storage, etc.
Est. time property sits empty

Monthly Expenses

Effective Monthly Income

$0.00

Total Monthly Expenses

$0.00

Net Monthly Cash Flow

$0.00

Annual Cash Flow: $0.00

Understanding Rental Property Cash Flow

Cash flow is the lifeblood of any rental property investment. Simply put, it is the money left over after all operating expenses and debt service payments have been collected from the rental income. A positive cash flow indicates a profitable investment that puts money in your pocket every month, while negative cash flow means the property costs you money to hold.

Why is Calculating Cash Flow Critical?

  • Financial Freedom: Positive cash flow provides passive income that can replace your salary over time.
  • Risk Mitigation: A property with a healthy cash flow buffer can better withstand unexpected repairs or vacancies without forcing you to pay out of pocket.
  • Loan Eligibility: Lenders often look at the Debt Service Coverage Ratio (DSCR), which relies heavily on the property's cash flow potential.

How This Calculator Works

Our Rental Property Cash Flow Calculator takes a comprehensive approach to ensure you don't overlook hidden costs. Here is the breakdown of the formula used:

  1. Gross Income: The total rent plus any additional income (laundry, parking).
  2. Vacancy Loss: We subtract a percentage of income to account for periods when the unit is unoccupied. This gives us the Effective Gross Income.
  3. Total Expenses: We sum up the mortgage, taxes, insurance, repairs, and management fees.
  4. Net Cash Flow: Finally, we subtract Total Expenses from Effective Gross Income.

Use this tool to analyze potential deals quickly and ensure your investment meets your financial goals before making an offer.

function calculateRentalCashFlow() { // 1. Get Input Values var rent = parseFloat(document.getElementById('monthlyRent').value) || 0; var otherInc = parseFloat(document.getElementById('otherIncome').value) || 0; var vacRate = parseFloat(document.getElementById('vacancyRate').value) || 0; var mortgage = parseFloat(document.getElementById('mortgagePayment').value) || 0; var tax = parseFloat(document.getElementById('propertyTax').value) || 0; var ins = parseFloat(document.getElementById('insurance').value) || 0; var repairs = parseFloat(document.getElementById('repairsMaint').value) || 0; var mgmt = parseFloat(document.getElementById('propManagement').value) || 0; // 2. Calculate Income var grossPotentialIncome = rent + otherInc; var vacancyLoss = grossPotentialIncome * (vacRate / 100); var effectiveIncome = grossPotentialIncome – vacancyLoss; // 3. Calculate Expenses var totalExpenses = mortgage + tax + ins + repairs + mgmt; // 4. Calculate Cash Flow var monthlyCashFlow = effectiveIncome – totalExpenses; var annualCashFlow = monthlyCashFlow * 12; // 5. Update UI document.getElementById('resultsArea').style.display = 'block'; // Format currency helper var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', }); document.getElementById('displayIncome').innerText = formatter.format(effectiveIncome); document.getElementById('displayExpenses').innerText = formatter.format(totalExpenses); var cashFlowEl = document.getElementById('displayCashFlow'); cashFlowEl.innerText = formatter.format(monthlyCashFlow); var annualFlowEl = document.getElementById('displayAnnualCashFlow'); annualFlowEl.innerText = formatter.format(annualCashFlow); // 6. Color Coding Logic if (monthlyCashFlow >= 0) { cashFlowEl.style.color = '#27ae60'; // Green annualFlowEl.style.color = '#27ae60'; } else { cashFlowEl.style.color = '#c0392b'; // Red annualFlowEl.style.color = '#c0392b'; } }

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