Rental Property Cash Flow Calculator
Analyze your real estate investment deal to determine monthly cash flow, Cap Rate, and Cash on Cash Return.
Please enter valid numeric values for all fields.
Purchase Details
Loan Details
Income & Expenses
Investment Analysis
Monthly Principal & Interest:
Total Monthly Expenses:
Net Monthly Cash Flow:
Net Operating Income (Annual):
Cap Rate:
Cash on Cash Return:
Understanding Rental Property Cash Flow
Investing in real estate is one of the most reliable ways to build wealth, but the success of an investment property hinges on the numbers. This Rental Property Cash Flow Calculator helps investors determine if a potential deal will generate positive income or become a financial burden.
Key Metrics Explained
When analyzing a rental property, three metrics are critical:
- Cash Flow: The net amount of cash moving in or out of the investment each month. It is calculated by subtracting all expenses (mortgage, taxes, insurance, HOA, maintenance) from the gross rental income. Positive cash flow means profit in your pocket.
- Cap Rate (Capitalization Rate): This measures the property's natural rate of return assuming it was bought with cash. It is calculated by dividing the Net Operating Income (NOI) by the property's purchase price. It helps compare the profitability of different properties regardless of financing.
- Cash on Cash Return (CoC): This measures the annual return on the actual cash you invested (down payment + closing costs). It is often the most important metric for investors using leverage (mortgages).
Real-World Example
Let's assume you find a single-family home listed for $200,000. Here is how the numbers might break down:
- Investment: You put 20% down ($40,000) and pay $5,000 in closing costs. Total cash invested is $45,000.
- Financing: You take a loan for $160,000 at 6.5% interest for 30 years. Your Principal & Interest payment is roughly $1,011/month.
- Operating Costs: Taxes are $3,000/year ($250/mo), Insurance is $1,200/year ($100/mo), and you set aside $200/mo for maintenance. Total non-mortgage monthly expenses = $550.
- Total Expenses: Mortgage ($1,011) + Operating ($550) = $1,561/month.
- Income: The property rents for $1,900/month.
The Result: Your monthly cash flow is $1,900 – $1,561 = $339/month. This translates to $4,068 per year. Dividing that annual profit by your initial $45,000 investment yields a 9.04% Cash on Cash return.