Total Mortgage Cost Calculator Fixed Rate Loan

Property Purchase Details

Income & Expenses (Monthly)

function calculateRentalCashFlow() { // Get inputs var price = parseFloat(document.getElementById('rpc_price').value); var downPercent = parseFloat(document.getElementById('rpc_down').value); var rate = parseFloat(document.getElementById('rpc_rate').value); var termYears = parseFloat(document.getElementById('rpc_term').value); var rent = parseFloat(document.getElementById('rpc_rent').value); var vacancyPercent = parseFloat(document.getElementById('rpc_vacancy').value); var tax = parseFloat(document.getElementById('rpc_tax').value); var insurance = parseFloat(document.getElementById('rpc_insurance').value); var maintenance = parseFloat(document.getElementById('rpc_maintenance').value); var hoa = parseFloat(document.getElementById('rpc_hoa').value); // Validation if (isNaN(price) || isNaN(downPercent) || isNaN(rate) || isNaN(termYears) || isNaN(rent)) { alert("Please enter valid numbers for all primary fields."); return; } // Handle optional fields if empty if (isNaN(vacancyPercent)) vacancyPercent = 0; if (isNaN(tax)) tax = 0; if (isNaN(insurance)) insurance = 0; if (isNaN(maintenance)) maintenance = 0; if (isNaN(hoa)) hoa = 0; // Mortgage Calculation var downPaymentAmount = price * (downPercent / 100); var loanAmount = price – downPaymentAmount; var monthlyRate = (rate / 100) / 12; var totalPayments = termYears * 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); } // Expense Calculations var vacancyCost = rent * (vacancyPercent / 100); var operatingExpenses = tax + insurance + maintenance + hoa; var totalMonthlyExpenses = monthlyMortgage + vacancyCost + operatingExpenses; // Cash Flow var cashFlow = rent – totalMonthlyExpenses; var annualCashFlow = cashFlow * 12; // Cash on Cash Return // Initial investment is Down Payment + (Closing Costs – estimated at 3% of price for rough calc, but let's stick to down payment to prevent confusion or add closing cost input later. For now, strictly down payment for CoC denominator as per standard simple calculators). // To make it more accurate, let's assume 2% closing costs added to investment basis. var closingCosts = price * 0.02; var totalCashInvested = downPaymentAmount + closingCosts; var cashOnCash = (annualCashFlow / totalCashInvested) * 100; // Display Results document.getElementById('rpc_res_mortgage').innerText = "$" + monthlyMortgage.toFixed(2); document.getElementById('rpc_res_vacancy').innerText = "$" + vacancyCost.toFixed(2); document.getElementById('rpc_res_operating').innerText = "$" + operatingExpenses.toFixed(2); document.getElementById('rpc_res_total_expenses').innerText = "$" + totalMonthlyExpenses.toFixed(2); var cashFlowEl = document.getElementById('rpc_res_cashflow'); cashFlowEl.innerText = "$" + cashFlow.toFixed(2); if (cashFlow >= 0) { cashFlowEl.className = "rpc-positive"; } else { cashFlowEl.className = "rpc-negative"; } var cocEl = document.getElementById('rpc_res_coc'); cocEl.innerText = cashOnCash.toFixed(2) + "%"; if (cashOnCash >= 0) { cocEl.className = "rpc-positive"; } else { cocEl.className = "rpc-negative"; } document.getElementById('rpc_result_container').style.display = "block"; }

Understanding Rental Property Cash Flow

Successful real estate investing relies heavily on the numbers. While property appreciation is a nice bonus, positive cash flow is the lifeblood that keeps an investment sustainable. This Rental Property Cash Flow Calculator is designed to help investors determine if a potential property will generate income or drain their bank account every month.

What is Cash Flow?

Cash flow is the net amount of money moving in and out of a business—in this case, your rental property. It is calculated by taking your Gross Rental Income and subtracting all Expenses.

• Positive Cash Flow: You earn more in rent than you pay in expenses. This is the goal for passive income.
• Negative Cash Flow: The property costs you money to hold every month. This is risky unless the property has massive appreciation potential.

Key Metrics in This Calculator

1. Net Monthly Cash Flow

This is the raw dollar amount left in your pocket at the end of the month.
Formula: Rent – (Mortgage + Taxes + Insurance + HOA + Maintenance + Vacancy Reserves).

2. Cash on Cash Return (CoC)

This metric measures the annual return on the actual cash you invested (Down Payment + Closing Costs), rather than the total value of the property. It is essentially the "interest rate" your money is earning while sitting in the property.

Most investors aim for a CoC return between 8% and 12%, though this varies by market and strategy.

Common Expenses Investors Overlook

When analyzing a deal, beginners often calculate mortgage, taxes, and insurance (PITI) but forget the "silent killers" of cash flow:

• Vacancy Rate: You won't have a tenant 12 months a year forever. Allocating 5-8% of rent for vacancy ensures you have reserves for turnover periods.
• Maintenance & CapEx: Roofs leak and toilets break. Setting aside 5-10% of the rent prevents you from being blindsided by repair bills.
• Property Management: Even if you self-manage now, it is wise to factor in 8-10% for management fees so the numbers still work if you decide to hire a manager later.

How to Use These Results

If the calculator shows a negative number, consider negotiating a lower purchase price, increasing the down payment to lower the mortgage, or verifying if the market rent can be raised. Use this tool to screen multiple properties quickly before making an offer.