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Rental Property Cash Flow Calculator .calculator-container { font-family: inherit; max-width: 800px; margin: 0 auto; padding: 20px; background-color: #f9f9f9; border: 1px solid #ddd; border-radius: 8px; } .calculator-title { text-align: center; color: #333; margin-bottom: 20px; } .input-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 20px; } @media (max-width: 600px) { .input-grid { grid-template-columns: 1fr; } } .input-group { margin-bottom: 15px; } .input-group label { display: block; margin-bottom: 5px; font-weight: bold; color: #555; } .input-group input { width: 100%; padding: 10px; border: 1px solid #ccc; border-radius: 4px; box-sizing: border-box; } .btn-calculate { display: block; width: 100%; padding: 15px; background-color: #0073aa; color: white; border: none; border-radius: 4px; font-size: 18px; cursor: pointer; margin-top: 20px; transition: background-color 0.3s; } .btn-calculate:hover { background-color: #005177; } .results-section { margin-top: 30px; padding: 20px; background-color: #fff; border: 1px solid #e5e5e5; border-radius: 4px; display: none; } .result-row { display: flex; justify-content: space-between; padding: 10px 0; border-bottom: 1px solid #eee; } .result-row:last-child { border-bottom: none; } .result-label { font-weight: bold; color: #444; } .result-value { font-weight: bold; color: #0073aa; } .highlight-result { font-size: 1.2em; color: #27ae60; } .negative { color: #c0392b; } .article-content { margin-top: 40px; line-height: 1.6; color: #333; } .article-content h2 { color: #0073aa; margin-top: 30px; } .article-content ul { padding-left: 20px; }

Rental Property Cash Flow Calculator

Monthly Financial Summary

Gross Monthly Income: –
Monthly Mortgage (P&I): –
Total Monthly Expenses (w/o Mortgage): –
Net Operating Income (NOI): –
Monthly Cash Flow: –
Cash on Cash Return (Annual): –

How to Calculate Rental Property Cash Flow

Understanding cash flow is the cornerstone of successful real estate investing. Cash flow represents the net amount of money moving into or out of a rental property business after all expenses have been paid. A positive cash flow means the property is generating profit, while negative cash flow implies a loss.

The Cash Flow Formula

The basic formula for calculating monthly rental cash flow is straightforward:

Cash Flow = Gross Income – Total Expenses

However, breaking down "Total Expenses" is where many investors make mistakes. To get an accurate picture, you must include:

  • Mortgage Payments: Principal and interest payments on your loan.
  • Property Taxes & Insurance: Recurring annual costs divided by 12.
  • Vacancy: A percentage of rent set aside to cover periods when the property is empty (typically 5-8%).
  • Maintenance & Repairs: Funds reserved for upkeep (typically 5-15% of rent).
  • Capital Expenditures (CapEx): Savings for major replacements like roofs or HVAC systems.

What is a Good Cash on Cash Return?

Cash on Cash (CoC) return measures the annual return you made on the cash you invested (Down Payment + Closing Costs + Rehab). It is calculated as:

(Annual Pre-Tax Cash Flow / Total Cash Invested) × 100

While "good" is subjective, many investors target a CoC return of 8% to 12%. In highly appreciative markets, investors might accept lower cash flow (4-6%), while in stable cash-flow markets, they might demand 15% or higher.

Example Calculation

Imagine you buy a property for $200,000 with $50,000 down. You rent it for $2,000/month.

  • Gross Income: $2,000
  • Mortgage (P&I): ~$950
  • Taxes/Ins/HOA: ~$450
  • Reserves (Vacancy/Maint): ~$300
  • Total Expenses: $1,700
  • Monthly Cash Flow: $300
  • Annual Cash Flow: $3,600
  • Cash on Cash Return: ($3,600 / $50,000) = 7.2%

Use the calculator above to run the numbers on your specific deal to ensure it meets your investment criteria before making an offer.

function calculateCashFlow() { // 1. Get Input Values 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 vacancyRate = parseFloat(document.getElementById('vacancyRate').value) || 0; var propertyTaxYear = parseFloat(document.getElementById('propertyTax').value) || 0; var insuranceYear = parseFloat(document.getElementById('insurance').value) || 0; var maintenanceRate = parseFloat(document.getElementById('maintenance').value) || 0; var otherExpenses = parseFloat(document.getElementById('otherExpenses').value) || 0; // 2. Calculate Mortgage (P&I) var loanAmount = purchasePrice – downPayment; var monthlyMortgage = 0; if (loanAmount > 0 && interestRate > 0 && loanTerm > 0) { var monthlyRate = (interestRate / 100) / 12; var numberOfPayments = loanTerm * 12; // Mortgage Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1] monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1); } // 3. Calculate Operating Expenses var vacancyCost = monthlyRent * (vacancyRate / 100); var maintenanceCost = monthlyRent * (maintenanceRate / 100); var taxMonthly = propertyTaxYear / 12; var insuranceMonthly = insuranceYear / 12; var operatingExpenses = vacancyCost + maintenanceCost + taxMonthly + insuranceMonthly + otherExpenses; var totalExpenses = operatingExpenses + monthlyMortgage; // 4. Calculate Cash Flow var effectiveGrossIncome = monthlyRent – vacancyCost; // Some definitions subtract vacancy from income first // For simplicity in display, we usually group vacancy as an expense or reduction in income. // Here: Cash Flow = Rent – (Vacancy + Maint + Tax + Ins + Other + Mortgage) // Which equals: Rent – Total Expenses // Note: Vacancy is often treated as "income lost", but mathematically subtracting it is correct. var monthlyCashFlow = monthlyRent – (vacancyCost + maintenanceCost + taxMonthly + insuranceMonthly + otherExpenses + monthlyMortgage); // NOI = Income – Operating Expenses (Excluding Mortgage) var netOperatingIncome = monthlyRent – operatingExpenses; // 5. Calculate Cash on Cash Return var annualCashFlow = monthlyCashFlow * 12; var cashOnCash = 0; if (downPayment > 0) { cashOnCash = (annualCashFlow / downPayment) * 100; } // 6. Format and Display Results var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 2 }); document.getElementById('displayGrossIncome').innerText = formatter.format(monthlyRent); document.getElementById('displayMortgage').innerText = formatter.format(monthlyMortgage); document.getElementById('displayOpEx').innerText = formatter.format(operatingExpenses); document.getElementById('displayNOI').innerText = formatter.format(netOperatingIncome); var cfElement = document.getElementById('displayCashFlow'); cfElement.innerText = formatter.format(monthlyCashFlow); if (monthlyCashFlow >= 0) { cfElement.style.color = "#27ae60"; // Green } else { cfElement.style.color = "#c0392b"; // Red } var cocElement = document.getElementById('displayCoC'); cocElement.innerText = cashOnCash.toFixed(2) + "%"; if (cashOnCash >= 0) { cocElement.style.color = "#27ae60"; } else { cocElement.style.color = "#c0392b"; } // Show results section document.getElementById('results').style.display = 'block'; }

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