Calculate your monthly cash flow, cap rate, and cash-on-cash return instantly.
Purchase & Loan Details
30 Years
15 Years
10 Years
Income & Expenses
Investment Analysis
Monthly Principal & Interest:$0.00
Total Monthly Expenses:$0.00
Net Operating Income (Monthly):$0.00
Monthly Cash Flow:$0.00
Cash on Cash Return (ROI):0.00%
Cap Rate:0.00%
Understanding Rental Property Cash Flow
Investing in real estate is one of the most reliable ways to build wealth, but simply buying a property doesn't guarantee profit. The most critical metric for buy-and-hold investors is Cash Flow—the net amount of money moving in or out of the business after all expenses and debt service are paid.
Our Rental Property Cash Flow Calculator helps you evaluate deals by breaking down income, operating expenses, and financing costs to determine if a property will be an asset or a liability.
Key Metrics Explained
1. Net Operating Income (NOI)
NOI is the calculation used to analyze the profitability of income-generating real estate investments. It equals all revenue from the property minus all reasonably necessary operating expenses. Note that NOI excludes mortgage payments (Principal and Interest).
Formula:NOI = Rental Income - (Operating Expenses + Vacancy Losses)
2. Cash on Cash Return (CoC)
This metric measures the annual return the investor made on the property in relation to the amount of mortgage paid during the same year. It is considered one of the most important ROI metrics because it calculates returns based on the actual cash invested (down payment + closing costs), not the total price of the property.
Target: Many investors aim for a Cash on Cash return of 8-12%, though this varies by market.
3. Cap Rate (Capitalization Rate)
Cap Rate indicates the rate of return that is expected to be generated on a real estate investment property. It assumes the property is bought with cash (no loan). It is useful for comparing the intrinsic value of different properties regardless of financing.
Common Expenses Often Overlooked
Vacancy Rate: Properties are rarely occupied 100% of the time. Budgeting 5-8% for vacancy ensures you aren't caught off guard during turnover.
Maintenance & Repairs: Even new homes need repairs. Setting aside 5-10% of monthly rent creates a "CapEx" (Capital Expenditure) fund for roofs, HVAC, and water heaters.
Property Management: If you don't plan to be a landlord 24/7, professional management typically costs 8-10% of the monthly rent.
How to Use This Calculator
Start by entering the purchase price and your financing details. Be honest with your expense estimates. Underestimating taxes, insurance, or repairs is the most common mistake new investors make. Adjust the rental income to see how sensitive your cash flow is to market fluctuations. If the "Monthly Cash Flow" turns red, the property is cash flow negative, meaning you will be paying out of pocket to hold the investment.
function calculateRPC() {
// 1. Get Inputs
var price = parseFloat(document.getElementById('rpcPurchasePrice').value) || 0;
var downPayment = parseFloat(document.getElementById('rpcDownPayment').value) || 0;
var interestRate = parseFloat(document.getElementById('rpcInterestRate').value) || 0;
var termYears = parseFloat(document.getElementById('rpcLoanTerm').value) || 30;
var closingCosts = parseFloat(document.getElementById('rpcClosingCosts').value) || 0;
var monthlyRent = parseFloat(document.getElementById('rpcMonthlyRent').value) || 0;
var annualTax = parseFloat(document.getElementById('rpcPropertyTax').value) || 0;
var annualInsurance = parseFloat(document.getElementById('rpcInsurance').value) || 0;
var monthlyHOA = parseFloat(document.getElementById('rpcHOA').value) || 0;
var maintenancePercent = parseFloat(document.getElementById('rpcMaintenance').value) || 0;
var vacancyPercent = parseFloat(document.getElementById('rpcVacancy').value) || 0;
var managementPercent = parseFloat(document.getElementById('rpcManagement').value) || 0;
// Validation to prevent bad math
if (price 0) {
cashOnCash = (annualCashFlow / totalCashInvested) * 100;
}
var noi = (monthlyRent – operatingExpenses) * 12;
var capRate = 0;
if (price > 0) {
capRate = (noi / price) * 100;
}
// 5. Update UI
document.getElementById('resMortgage').innerText = formatCurrency(mortgagePayment);
document.getElementById('resExpenses').innerText = formatCurrency(totalExpenses);
document.getElementById('resNOI').innerText = formatCurrency(monthlyRent – operatingExpenses);
var cfElement = document.getElementById('resCashFlow');
cfElement.innerText = formatCurrency(monthlyCashFlow);
if (monthlyCashFlow >= 0) {
cfElement.style.color = "#27ae60";
} else {
cfElement.style.color = "#c0392b";
}
document.getElementById('resCoC').innerText = cashOnCash.toFixed(2) + "%";
document.getElementById('resCapRate').innerText = capRate.toFixed(2) + "%";
// Show results
document.getElementById('rpcResults').style.display = 'block';
}
function formatCurrency(num) {
return "$" + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}