Rental Property Cash Flow Calculator
Analyze the profitability of your real estate investment instantly.
Purchase Information
Financing Details
Rental Income
Recurring Expenses
Variable Expenses (Estimates)
Investment Analysis
Monthly Cash Flow
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Cash on Cash Return
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Cap Rate
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Net Operating Income (NOI) / Mo
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Monthly Breakdown:
Total Income:
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Mortgage Payment (P&I):
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Operating Expenses:
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How to Analyze a Rental Property Investment
Successful real estate investing relies on accurate math, not just intuition. This Rental Property Cash Flow Calculator helps investors determine if a specific property will generate profit (positive cash flow) or cost money to hold (negative cash flow).
Understanding the Key Metrics
- Cash Flow: This is the net profit you pocket every month after all expenses and mortgage payments are made.
Formula: Total Income – Total Expenses (including Mortgage). - Cash on Cash Return (CoC): This measures the return on the actual cash you invested (down payment + closing costs + rehab costs). It is crucial for comparing real estate returns to other investments like stocks.
Formula: (Annual Cash Flow / Total Cash Invested) * 100. - Net Operating Income (NOI): A measure of the profitability of the property before financing costs. It helps calculate the Cap Rate.
Formula: Income – Operating Expenses (excluding Mortgage). - Cap Rate (Capitalization Rate): Used to estimate the potential return on an investment property assuming it was bought with all cash.
Formula: (Annual NOI / Purchase Price) * 100.
The 50% Rule and 1% Rule
Experienced investors often use "rules of thumb" for quick screening:
The 1% Rule suggests that a property's monthly rent should be at least 1% of the purchase price to be cash flow positive. For example, a $200,000 home should rent for at least $2,000.
The 50% Rule estimates that 50% of your rental income will go toward operating expenses (taxes, insurance, repairs, vacancy), not including the mortgage. If your mortgage payment is greater than the remaining 50%, you may have negative cash flow.
Use the calculator above to move beyond rules of thumb and get precise numbers for your potential deal.