How to Calculate Projected Interest Rate

Rental Property Cash Flow Calculator :root { –primary-color: #2c3e50; –accent-color: #27ae60; –bg-color: #f4f7f6; –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: var(–bg-color); margin: 0; padding: 20px; } .container { max-width: 1000px; margin: 0 auto; background: #fff; padding: 40px; border-radius: var(–border-radius); box-shadow: 0 4px 6px rgba(0,0,0,0.1); } h1 { text-align: center; color: var(–primary-color); margin-bottom: 30px; font-size: 2.5rem; } .calculator-wrapper { display: grid; grid-template-columns: 1fr 1fr; gap: 40px; margin-bottom: 50px; padding: 30px; background: #fdfdfd; border: 1px solid #e0e0e0; border-radius: var(–border-radius); } .input-section h3, .result-section h3 { margin-top: 0; color: var(–primary-color); border-bottom: 2px solid var(–accent-color); padding-bottom: 10px; margin-bottom: 20px; } .form-group { margin-bottom: 15px; } .form-group label { display: block; margin-bottom: 5px; font-weight: 600; font-size: 0.9rem; } .form-group input { width: 100%; padding: 10px; border: 1px solid #ddd; border-radius: 4px; font-size: 1rem; box-sizing: border-box; /* Fix padding issues */ } .form-group .input-suffix { position: relative; } .btn-calculate { display: block; width: 100%; padding: 15px; background-color: var(–accent-color); color: white; border: none; border-radius: 4px; font-size: 1.1rem; font-weight: bold; cursor: pointer; transition: background-color 0.3s; margin-top: 20px; } .btn-calculate:hover { background-color: #219150; } .result-box { background: #f8f9fa; padding: 20px; border-radius: var(–border-radius); margin-bottom: 20px; text-align: center; border: 1px solid #e9ecef; } .result-value { font-size: 2rem; font-weight: bold; color: var(–accent-color); margin: 10px 0; } .result-label { font-size: 0.9rem; color: #666; text-transform: uppercase; letter-spacing: 1px; } .metrics-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 15px; } .metric-item { background: #fff; padding: 10px; border: 1px solid #eee; border-radius: 4px; text-align: center; } .metric-item strong { display: block; font-size: 1.2rem; color: var(–primary-color); } .metric-item span { font-size: 0.8rem; color: #777; } .negative { color: #c0392b !important; } article { margin-top: 40px; border-top: 1px solid #eee; padding-top: 20px; } article h2 { color: var(–primary-color); margin-top: 30px; } article p, article ul { font-size: 1.05rem; color: #444; } @media (max-width: 768px) { .calculator-wrapper { grid-template-columns: 1fr; } .container { padding: 20px; } }

Rental Property Cash Flow Calculator

Property & Loan Details

Income & Expenses (Monthly)

Financial Analysis

Monthly Cash Flow
$0.00
0.00% Cash on Cash Return
0.00% Cap Rate
$0.00 Total Monthly Expenses
$0.00 Monthly Mortgage (P&I)
$0.00 Monthly NOI
$0.00 Annual Cash Flow

How to Analyze a Rental Property Investment

Investing in real estate is a powerful way to build wealth, but simply buying a property doesn't guarantee a profit. Successful real estate investors rely on accurate math to determine if a specific property will generate positive cash flow or become a financial burden. This Rental Property Cash Flow Calculator helps you crunch the numbers instantly.

Key Metrics Explained

When evaluating a rental deal, there are three primary metrics you should understand:

  • Cash Flow: This is your profit after all expenses, including the mortgage, are paid. Positive cash flow means the property puts money in your pocket every month. It is calculated as: Total Income – Total Expenses.
  • Cash on Cash Return (CoC): This measures the return on the actual cash you invested (down payment + closing costs). It is crucial for comparing real estate returns against other investments like stocks. Formula: Annual Cash Flow / Total Cash Invested.
  • Cap Rate (Capitalization Rate): This metric evaluates the profitability of a property regardless of how it is financed. It helps compare the inherent value of different properties. Formula: Net Operating Income (NOI) / Purchase Price.

Understanding Expenses

Many new investors underestimate expenses. Beyond the mortgage payment, you must account for:

  • Vacancy: Properties won't be rented 365 days a year. Allocating 5-10% of rent for vacancy is a standard safety net.
  • Maintenance & Repairs: Even new homes break. Set aside 5-10% of monthly rent to cover future repairs like water heaters, painting, or roof patches.
  • Management Fees: If you hire a property manager, they typically charge 8-12% of the monthly rent. If you self-manage, this is 0%, but costs you time.

What is a "Good" Return?

While targets vary by investor and market, a common benchmark for Cash on Cash Return is 8-12%. For Cash Flow, many investors look for at least $100-$200 per door per month in profit. Using this calculator allows you to stress-test your assumptions before making an offer.

function calculateRental() { // 1. Get Inputs var purchasePrice = parseFloat(document.getElementById('purchasePrice').value) || 0; var downPayment = parseFloat(document.getElementById('downPayment').value) || 0; var interestRate = parseFloat(document.getElementById('interestRate').value) || 0; var loanTerm = parseFloat(document.getElementById('loanTerm').value) || 0; var monthlyRent = parseFloat(document.getElementById('monthlyRent').value) || 0; var propertyTaxYear = parseFloat(document.getElementById('propertyTax').value) || 0; var insuranceYear = parseFloat(document.getElementById('insurance').value) || 0; var vacancyRate = parseFloat(document.getElementById('vacancyRate').value) || 0; var maintenanceRate = parseFloat(document.getElementById('maintenance').value) || 0; var managementRate = parseFloat(document.getElementById('managementFee').value) || 0; // 2. Calculate Loan Details var loanAmount = purchasePrice – downPayment; var monthlyMortgage = 0; if (loanAmount > 0 && interestRate > 0 && loanTerm > 0) { var monthlyRate = (interestRate / 100) / 12; var numberOfPayments = loanTerm * 12; monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1); } else if (loanAmount > 0 && interestRate === 0) { monthlyMortgage = loanAmount / (loanTerm * 12); } // 3. Calculate Monthly Operating Expenses var monthlyTax = propertyTaxYear / 12; var monthlyInsurance = insuranceYear / 12; var vacancyCost = monthlyRent * (vacancyRate / 100); var maintenanceCost = monthlyRent * (maintenanceRate / 100); var managementCost = monthlyRent * (managementRate / 100); var totalOperatingExpenses = monthlyTax + monthlyInsurance + vacancyCost + maintenanceCost + managementCost; var totalExpenses = totalOperatingExpenses + monthlyMortgage; // 4. Calculate Key Metrics var monthlyNOI = monthlyRent – totalOperatingExpenses; // Net Operating Income (before debt service) var monthlyCashFlow = monthlyNOI – monthlyMortgage; var annualCashFlow = monthlyCashFlow * 12; var annualNOI = monthlyNOI * 12; // Cash on Cash Return // Assuming Total Cash Invested is just Down Payment for simplicity (could add closing costs input) var totalCashInvested = downPayment; var cocReturn = 0; if (totalCashInvested > 0) { cocReturn = (annualCashFlow / totalCashInvested) * 100; } else if (totalCashInvested === 0 && annualCashFlow > 0) { cocReturn = Infinity; // Infinite return if no money down } // Cap Rate var capRate = 0; if (purchasePrice > 0) { capRate = (annualNOI / purchasePrice) * 100; } // 5. Update UI document.getElementById('monthlyCashFlow').innerText = formatCurrency(monthlyCashFlow); document.getElementById('monthlyCashFlow').style.color = monthlyCashFlow >= 0 ? 'var(–accent-color)' : '#c0392b'; document.getElementById('cocReturn').innerText = formatNumber(cocReturn) + "%"; document.getElementById('cocReturn').classList.toggle('negative', cocReturn < 0); document.getElementById('capRate').innerText = formatNumber(capRate) + "%"; document.getElementById('monthlyExpenses').innerText = formatCurrency(totalExpenses); document.getElementById('monthlyMortgage').innerText = formatCurrency(monthlyMortgage); document.getElementById('noi').innerText = formatCurrency(monthlyNOI); document.getElementById('annualCashFlow').innerText = formatCurrency(annualCashFlow); document.getElementById('annualCashFlow').classList.toggle('negative', annualCashFlow < 0); } function formatCurrency(num) { return new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' }).format(num); } function formatNumber(num) { return num.toFixed(2); } // Initial Calculation on Load window.onload = function() { calculateRental(); };

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