Rental Property Cash Flow Calculator
Purchase Info
Loan Details
30 Years
15 Years
10 Years
Income & Expenses
Monthly Analysis
Gross Rent:
$0.00
Vacancy Loss:
-$0.00
Operating Income:
$0.00
Expenses
Mortgage Payment (P&I):
-$0.00
Property Tax (Mo):
-$0.00
Insurance (Mo):
-$0.00
HOA/Fees:
-$0.00
Maintenance:
-$0.00
Total Monthly Expenses:
-$0.00
Investment Returns
Monthly Cash Flow:
$0.00
Annual Cash Flow:
$0.00
Cash on Cash Return (CoC):
0.00%
Cap Rate:
0.00%
What is Rental Property Cash Flow?
Rental property cash flow is the net amount of money left over after all expenses associated with the property have been paid from the collected rent. It is the lifeblood of real estate investing. Positive cash flow means your property is generating profit every month, while negative cash flow implies you are losing money to hold the asset.
Calculating accurate cash flow involves more than just subtracting the mortgage from the rent. As a savvy investor, you must account for "hidden" costs like vacancy rates, maintenance reserves, property taxes, insurance, and HOA fees to determine the true viability of an investment.
How to Use This Calculator
This calculator is designed to provide a comprehensive analysis of a potential rental property. Here is how to interpret the key inputs:
- Purchase Price & Down Payment: Determines your initial investment and loan amount.
- Vacancy Rate: Realistically, a property won't be occupied 100% of the time. A standard estimate is 5% to 8%.
- Maintenance Reserve: Setting aside 5% to 15% of the rent for future repairs (roof, HVAC, plumbing) ensures you aren't caught off guard.
- Cash on Cash Return (CoC): This is the most critical metric for investors. It calculates the annual cash return relative to the actual cash you invested (Down Payment + Closing Costs).
Understanding the Results
Monthly Cash Flow: This is your passive income. If this number is positive, the tenant is paying off your mortgage and expenses while putting money in your pocket.
Cap Rate (Capitalization Rate): This metric measures the property's natural rate of return assuming it was bought with cash. It helps compare different properties regardless of financing methods. A higher Cap Rate generally indicates a better deal, though it often comes with higher risk.
Why is Cash on Cash Return Important?
While the total profit matters, the Cash on Cash Return tells you how hard your money is working. For example, earning $5,000 a year on a $100,000 investment (5% CoC) is very different from earning $5,000 on a $20,000 investment (25% CoC). This calculator highlights your CoC return to help you prioritize high-efficiency investments.