How to Calculate Interest Rate per Month in Bank

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Rental Property Cash Flow Calculator | Real Estate Investment Analysis :root { –primary-color: #2c3e50; –accent-color: #27ae60; –bg-color: #f8f9fa; –text-color: #333; –border-radius: 8px; } body { font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; line-height: 1.6; color: var(–text-color); background-color: #fff; margin: 0; padding: 20px; } .container { max-width: 1000px; margin: 0 auto; display: flex; flex-wrap: wrap; gap: 40px; } .content-area { flex: 1 1 600px; } .calculator-card { flex: 1 1 350px; background: #ffffff; border: 1px solid #e0e0e0; border-radius: var(–border-radius); padding: 25px; box-shadow: 0 4px 12px rgba(0,0,0,0.05); height: fit-content; } .calculator-header { margin-bottom: 20px; border-bottom: 2px solid var(–accent-color); padding-bottom: 10px; } .calculator-header h3 { margin: 0; color: var(–primary-color); } .form-group { margin-bottom: 15px; } .form-group label { display: block; margin-bottom: 5px; font-weight: 600; font-size: 0.9em; color: var(–primary-color); } .input-wrapper { position: relative; } .input-prefix, .input-suffix { position: absolute; top: 50%; transform: translateY(-50%); color: #777; font-size: 0.9em; } .input-prefix { left: 10px; } .input-suffix { right: 10px; } .form-group input { width: 100%; padding: 10px 10px 10px 25px; border: 1px solid #ccc; border-radius: 4px; font-size: 16px; box-sizing: border-box; } .form-group input:focus { outline: none; border-color: var(–accent-color); box-shadow: 0 0 0 2px rgba(39, 174, 96, 0.2); } .btn-calc { width: 100%; background-color: var(–accent-color); color: white; border: none; padding: 12px; font-size: 16px; font-weight: bold; border-radius: 4px; cursor: pointer; transition: background 0.3s; margin-top: 10px; } .btn-calc:hover { background-color: #219150; } .results-area { margin-top: 25px; background: var(–bg-color); padding: 15px; border-radius: 4px; display: none; /* Hidden until calculated */ } .result-row { display: flex; justify-content: space-between; margin-bottom: 10px; padding-bottom: 10px; border-bottom: 1px solid #e0e0e0; } .result-row:last-child { border-bottom: none; margin-bottom: 0; padding-bottom: 0; } .result-label { font-size: 0.9em; color: #555; } .result-value { font-weight: bold; color: var(–primary-color); } .result-value.positive { color: var(–accent-color); } .result-value.negative { color: #c0392b; } .highlight-result { background-color: #fff; padding: 10px; border-radius: 4px; text-align: center; margin-top: 10px; border: 1px solid #ddd; } .highlight-result .result-label { display: block; margin-bottom: 5px; } .highlight-result .result-value { font-size: 1.4em; } /* Article Styles */ h1 { color: var(–primary-color); margin-bottom: 0.5em; } h2 { color: var(–primary-color); margin-top: 1.5em; border-bottom: 1px solid #eee; padding-bottom: 10px; } p { margin-bottom: 1.2em; color: #444; } ul { margin-bottom: 1.2em; color: #444; } li { margin-bottom: 0.5em; } @media (max-width: 768px) { .container { flex-direction: column-reverse; } .content-area, .calculator-card { flex: 1 1 100%; } }

Rental Property Cash Flow Calculator

Investing in real estate is one of the most reliable ways to build long-term wealth, but success hinges on the numbers. The difference between a profitable asset and a financial burden often comes down to one metric: Cash Flow.

Use our specific Rental Property Cash Flow Calculator to analyze potential deals instantly. This tool takes into account your financing costs, operating expenses, and projected income to determine exactly how much profit passes into your pocket every month.

How to Calculate Cash Flow on a Rental Property

Real estate cash flow is essentially the net income from a property after all expenses are paid. The formula used in this calculator is:

  • Gross Income: Total rent collected.
  • Operating Expenses: Taxes, insurance, HOA fees, maintenance, and vacancy reserves.
  • Debt Service: The monthly principal and interest payment on your mortgage.

The calculation is: Gross Rent – (Operating Expenses + Debt Service) = Net Cash Flow.

Understanding the Inputs

To get accurate results, ensure you are inputting realistic data:

  • Purchase Price: The agreed-upon price of the property.
  • Down Payment: The cash you are putting down upfront. This affects your loan amount and your "Cash on Cash" return.
  • Interest Rate: Your annual mortgage interest rate. Even a 0.5% difference can significantly impact monthly cash flow.
  • Monthly Operating Expenses: Do not underestimate this. Include property taxes, insurance, property management fees (usually 8-10%), and maintenance reserves.

What is a Good Cash on Cash (CoC) Return?

While "Cash Flow" is the dollar amount you keep, Cash on Cash Return measures the efficiency of your investment. It is calculated by dividing your annual pre-tax cash flow by the total cash invested.

Most investors aim for a CoC return of 8% to 12%, though this varies by market. A high cash flow with a low cash investment results in a higher CoC return, which is the "holy grail" of rental investing.

Why Debt Service Coverage Ratio Matters

While not explicitly displayed as a percentage here, your ability to cover the mortgage is critical. Banks look for a Debt Service Coverage Ratio (DSCR) of 1.25 or higher, meaning your net operating income is 1.25 times your debt obligation. If your Cash Flow is negative or near zero, the investment is considered high risk.

function calculateCashFlow() { // Get Inputs var price = parseFloat(document.getElementById('purchasePrice').value); var downPayment = parseFloat(document.getElementById('downPayment').value); var rate = parseFloat(document.getElementById('interestRate').value); var years = parseFloat(document.getElementById('loanTerm').value); var rent = parseFloat(document.getElementById('monthlyRent').value); var expenses = parseFloat(document.getElementById('monthlyExpenses').value); // Validation if (isNaN(price) || isNaN(downPayment) || isNaN(rate) || isNaN(years) || isNaN(rent) || isNaN(expenses)) { alert("Please enter valid numbers in all fields."); return; } // 1. Calculate Loan Amount var loanAmount = price – downPayment; // 2. Calculate Monthly Mortgage (P&I) // Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1] // i = monthly interest rate (annual / 12 / 100) // n = total payments (years * 12) var monthlyRate = rate / 100 / 12; var totalPayments = years * 12; var monthlyMortgage = 0; if (rate === 0) { monthlyMortgage = loanAmount / totalPayments; } else { monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, totalPayments)) / (Math.pow(1 + monthlyRate, totalPayments) – 1); } // 3. Calculate Total Monthly Costs var totalMonthlyCost = monthlyMortgage + expenses; // 4. Calculate Net Monthly Cash Flow var cashFlow = rent – totalMonthlyCost; // 5. Calculate Annual Cash Flow var annualCashFlow = cashFlow * 12; // 6. Calculate Cash on Cash Return // CoC = Annual Cash Flow / Total Cash Invested (Down Payment) // Note: For simplicity, we assume closing costs are 0 or included in downpayment logic for this basic calc, // but strictly it should include closing costs. We divide by downPayment here. var cocReturn = 0; if (downPayment > 0) { cocReturn = (annualCashFlow / downPayment) * 100; } // Display Results var resultContainer = document.getElementById('result'); resultContainer.style.display = 'block'; // Format Currency Function function formatMoney(num) { return '$' + num.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}); } document.getElementById('resLoanAmount').innerText = formatMoney(loanAmount); document.getElementById('resMortgage').innerText = formatMoney(monthlyMortgage); document.getElementById('resTotalCost').innerText = formatMoney(totalMonthlyCost); var cashFlowEl = document.getElementById('resCashFlow'); cashFlowEl.innerText = formatMoney(cashFlow); // Color coding for cash flow if (cashFlow >= 0) { cashFlowEl.className = "result-value positive"; } else { cashFlowEl.className = "result-value negative"; } var cocEl = document.getElementById('resCoc'); cocEl.innerText = cocReturn.toFixed(2) + '%'; if (cocReturn >= 0) { cocEl.className = "result-value positive"; } else { cocEl.className = "result-value negative"; } }

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