Purchase Information
30 Years
15 Years
10 Years
Income & Expenses
Property Financial Analysis
Monthly Cash Flow
$0.00
Cash on Cash ROI
0.00%
Cap Rate
0.00%
Total Monthly Expenses
$0.00
Monthly Mortgage Payment
$0.00
Understanding Rental Property Cash Flow
Before investing in real estate, calculating your potential cash flow and return on investment (ROI) is crucial. This calculator helps investors determine if a rental property will generate positive income after all expenses are paid.
Key Metrics Explained
Monthly Cash Flow: This is the net profit you pocket every month. It is calculated by subtracting all monthly expenses (mortgage, taxes, insurance, repairs) from your monthly rental income. Positive cash flow ensures the property pays for itself.
Cash on Cash ROI: This metric measures the annual return on the actual cash you invested (down payment + closing costs). Unlike a simple cap rate, this accounts for leverage (your mortgage) and gives a better picture of how hard your specific capital is working.
Cap Rate (Capitalization Rate): The Cap Rate indicates the potential return on an investment assuming it was bought entirely with cash. It helps compare the profitability of different properties independently of financing terms.
How to Use This Calculator
Enter the purchase price and loan details to estimate your mortgage payment. Then, input your expected rental income and operating expenses. Be realistic with maintenance costs—setting aside 1% of the property value annually for repairs is a common rule of thumb for landlords.