Wells Fargo Mortgage Interest Rate Calculator

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Rental Property Monthly Cash Flow Calculator

Monthly Income

Fixed Monthly Expenses

Variable Expense Estimates (%)

Enter as percentages of gross rent.

Estimated Results

Total Monthly Expenses
$0.00
Net Monthly Cash Flow
$0.00
Net Annual Cash Flow
$0.00
function calculateCashFlow() { // 1. Get inputs and handle potential bad data (NaN or empty string becomes 0) var rent = parseFloat(document.getElementById('monthlyRent').value) || 0; var mortgage = parseFloat(document.getElementById('mortgagePayment').value) || 0; var taxes = parseFloat(document.getElementById('propertyTaxes').value) || 0; var insurance = parseFloat(document.getElementById('insurance').value) || 0; var hoa = parseFloat(document.getElementById('hoaDues').value) || 0; var vacancyPct = parseFloat(document.getElementById('vacancyRate').value) || 0; var maintenancePct = parseFloat(document.getElementById('maintenanceRate').value) || 0; var managementPct = parseFloat(document.getElementById('managementFee').value) || 0; // 2. Calculate Variable Expenses based on percentages of rent var vacancyCost = rent * (vacancyPct / 100); var maintenanceCost = rent * (maintenancePct / 100); var managementCost = rent * (managementPct / 100); // 3. Calculate Totals var totalFixedExpenses = mortgage + taxes + insurance + hoa; var totalVariableExpenses = vacancyCost + maintenanceCost + managementCost; var totalMonthlyExpenses = totalFixedExpenses + totalVariableExpenses; var monthlyCashFlow = rent – totalMonthlyExpenses; var annualCashFlow = monthlyCashFlow * 12; // 4. Format and Display Results var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 2 }); document.getElementById('resultTotalExpenses').innerText = formatter.format(totalMonthlyExpenses); var monthlyResultEl = document.getElementById('resultMonthlyCashFlow'); monthlyResultEl.innerText = formatter.format(monthlyCashFlow); // Change color based on positive/negative flow monthlyResultEl.style.color = monthlyCashFlow >= 0 ? '#28a745' : '#d9534f'; var annualResultEl = document.getElementById('resultAnnualCashFlow'); annualResultEl.innerText = formatter.format(annualCashFlow); // Change color based on positive/negative flow annualResultEl.style.color = annualCashFlow >= 0 ? '#28a745' : '#d9534f'; document.getElementById('cashFlowResult').style.display = 'block'; }

Understanding Rental Property Cash Flow

Cash flow is the lifeblood of any rental real estate investment. It represents the net amount of money remaining after all operating expenses and mortgage payments have been collected from the rental income. A positive cash flow means your investment is generating income monthly, while a negative cash flow indicates you are paying out of pocket to hold the investment.

Accurately estimating cash flow is crucial before purchasing a property. Many new investors make the mistake of only subtracting the mortgage payment from the rent, ignoring significant costs like vacancy, repairs, and management fees, which can quickly turn a seemingly profitable deal into a financial burden.

Key Calculator Inputs Explained

  • Gross Monthly Rent: The total amount you expect to collect from tenants each month.
  • Fixed Expenses (PITI + HOA): These are recurring, generally predictable monthly costs. They include Principal & Interest on your loan, Property Taxes, Insurance, and Homeowners Association dues.
  • Vacancy Rate (%): No property stays occupied 100% of the time. This percentage estimates lost income due to tenant turnover. A common estimate is 5% to 8% of gross rent.
  • Maintenance/CapEx Reserve (%): You must set aside money for ongoing repairs (leaky faucets) and major Capital Expenditures (new roof, HVAC). Depending on the property age, investors often allocate 5% to 15% of gross rent.
  • Property Management Fee (%): If you hire a professional company to manage tenants and repairs, they typically charge between 8% and 12% of the collected monthly rent.

Example Calculation Scenario

Let's look at a realistic example of how these numbers interact using the calculator above.

Imagine you are buying a single-family home that rents for $2,500 per month.

  1. Your fixed monthly costs are: a $1,350 mortgage payment, $300 for taxes, and $100 for insurance. There is no HOA.
  2. You estimate conservative variable costs: a 5% vacancy rate, 10% for maintenance reserves, and you manage it yourself (0% management fee).

When you input these figures, the calculator determines your variable costs are $375 (15% of $2,500). Your total monthly expenses equal $1,750 ($1,350 + $300 + $100) plus the $375 in variable estimates, totaling $2,125 per month.

Subtracting total expenses from the gross rent ($2,500 – $2,125) leaves you with a positive Net Monthly Cash Flow of $375.

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