Analyze the profitability of your real estate investment
(Taxes, Insurance, Repairs, Vacancy, etc.)
Monthly Mortgage Payment$0.00
Total Monthly Expenses$0.00
Monthly Cash Flow$0.00
Annual Cash Flow$0.00
Cash on Cash Return0.00%
Cap Rate0.00%
function calculateRentalCashFlow() {
// Get Inputs
var price = parseFloat(document.getElementById('rpcPurchasePrice').value);
var downPercent = parseFloat(document.getElementById('rpcDownPayment').value);
var interestRate = parseFloat(document.getElementById('rpcInterestRate').value);
var termYears = parseFloat(document.getElementById('rpcLoanTerm').value);
var monthlyRent = parseFloat(document.getElementById('rpcMonthlyRent').value);
var otherExpenses = parseFloat(document.getElementById('rpcMonthlyExpenses').value);
// Validation
if (isNaN(price) || isNaN(downPercent) || isNaN(interestRate) || isNaN(termYears) || isNaN(monthlyRent) || isNaN(otherExpenses)) {
alert("Please fill in all fields with valid numbers.");
return;
}
// Calculations
var downPaymentAmount = price * (downPercent / 100);
var loanAmount = price – downPaymentAmount;
// Mortgage Calculation (Principal + Interest)
var monthlyRate = (interestRate / 100) / 12;
var totalPayments = termYears * 12;
var monthlyMortgage = 0;
if (interestRate === 0) {
monthlyMortgage = loanAmount / totalPayments;
} else {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, totalPayments)) / (Math.pow(1 + monthlyRate, totalPayments) – 1);
}
var totalMonthlyExpenses = monthlyMortgage + otherExpenses;
var monthlyCashFlow = monthlyRent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// NOI (Net Operating Income) = Income – Operating Expenses (excluding mortgage)
var annualNOI = (monthlyRent – otherExpenses) * 12;
// Cap Rate = (NOI / Purchase Price) * 100
var capRate = (annualNOI / price) * 100;
// Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) * 100
// Assuming Total Cash Invested is just the down payment for simplicity here.
var cashOnCash = 0;
if (downPaymentAmount > 0) {
cashOnCash = (annualCashFlow / downPaymentAmount) * 100;
}
// Display Results
var resultDiv = document.getElementById('rpcResults');
resultDiv.style.display = 'block';
document.getElementById('rpcResMortgage').innerText = '$' + monthlyMortgage.toFixed(2);
document.getElementById('rpcResTotalExpenses').innerText = '$' + totalMonthlyExpenses.toFixed(2);
var cfElem = document.getElementById('rpcResCashFlow');
cfElem.innerText = '$' + monthlyCashFlow.toFixed(2);
cfElem.className = monthlyCashFlow >= 0 ? 'rpc-value rpc-positive' : 'rpc-value rpc-negative';
var acfElem = document.getElementById('rpcResAnnualCashFlow');
acfElem.innerText = '$' + annualCashFlow.toFixed(2);
acfElem.className = annualCashFlow >= 0 ? 'rpc-value rpc-positive' : 'rpc-value rpc-negative';
var cocElem = document.getElementById('rpcResCoC');
cocElem.innerText = cashOnCash.toFixed(2) + '%';
cocElem.className = cashOnCash >= 0 ? 'rpc-value rpc-positive' : 'rpc-value rpc-negative';
document.getElementById('rpcResCapRate').innerText = capRate.toFixed(2) + '%';
}
Understanding Your Rental Property Cash Flow
Investing in real estate is a powerful way to build wealth, but the success of any rental property hinges on the numbers. Our Rental Property Cash Flow Calculator is designed to give investors a clear picture of their potential returns before signing on the dotted line.
What is Cash Flow?
Cash flow is the net amount of cash moving into or out of a business or investment. In real estate, positive cash flow occurs when your monthly rental income exceeds all your expenses, including the mortgage, taxes, insurance, and maintenance costs. Positive cash flow provides passive income, while negative cash flow means the property costs you money to hold every month.
Key Metrics Calculated
Monthly Cash Flow: Your profit (or loss) every month after all bills are paid.
Cash on Cash Return (CoC): A metric used to define the return on the actual cash invested (down payment). It is calculated by dividing the annual pre-tax cash flow by the total cash invested. A CoC of 8-12% is often considered a solid benchmark for rental properties.
Cap Rate (Capitalization Rate): This measures the natural rate of return on an investment assuming it was paid for in cash. It is calculated by dividing the Net Operating Income (NOI) by the current market value (or purchase price) of the property. It helps compare different properties regardless of financing methods.
How to Use This Calculator
To get the most accurate results, ensure you estimate your expenses conservatively. Operating expenses should include property management fees (usually 8-10% of rent), vacancy reserves (assume 5-8% vacancy), repairs, property taxes, and landlord insurance. By inputting realistic numbers into the calculator above, you can minimize risk and make data-driven investment decisions.