Rental Property Cash Flow Calculator
Purchase & Financing
Income & Expenses (Monthly)
Investment Analysis
Monthly Mortgage Payment (P&I):
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Total Monthly Expenses:
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Net Monthly Cash Flow:
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Total Cash Invested (Upfront):
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Cash on Cash Return (ROI):
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Cap Rate:
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Understanding Rental Property Cash Flow Analysis
Investing in real estate is one of the most reliable ways to build wealth, but not every property is a good investment. The key to success lies in accurately calculating your Cash Flow—the net amount of money left in your pocket after all expenses are paid. Our Rental Property Cash Flow Calculator helps investors evaluate the profitability of a potential purchase.
Key Investment Metrics Explained
1. Net Monthly Cash Flow
This is the primary metric for buy-and-hold investors. It is calculated as:
Gross Rental Income – (Mortgage + Taxes + Insurance + HOA + Maintenance + Vacancy)
Positive cash flow ensures the property pays for itself and provides passive income. Negative cash flow means you are losing money every month to hold the asset.
2. Cash on Cash Return (CoC)
While cash flow tells you dollar amounts, the Cash on Cash Return tells you how hard your money is working. It measures the annual return on the actual cash you invested (down payment + closing costs), rather than the total loan amount.
Formula: (Annual Net Cash Flow / Total Cash Invested) × 100
Most investors aim for a CoC return of 8-12% or higher.
3. Capitalization Rate (Cap Rate)
The Cap Rate measures the property's natural rate of return assuming you paid all cash (no loan). It allows you to compare properties with different financing structures. A higher cap rate generally indicates a better return, though often with higher risk.
Common Expenses to Watch Out For
- Vacancy Rate: Always budget for times the property sits empty. 5-8% of gross rent is a standard reserve.
- Maintenance & CapEx: Roofs leak and water heaters break. Setting aside 5-10% of rent for repairs is prudent.
- Property Management: If you don't plan to be a landlord yourself, expect to pay a manager 8-10% of the monthly rent.