Analyze your real estate investment performance instantly.
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Investment Analysis
Monthly Cash Flow
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Cash on Cash Return
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Cap Rate
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Total Cash Needed
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Monthly Breakdown:
Mortgage Payment (P&I):
Operating Expenses:
Net Operating Income (NOI):
Understanding Rental Property Cash Flow
Calculating cash flow is the fundamental step in evaluating any real estate investment. Cash flow is the amount of profit you bring in each month after collecting all income, paying all operating expenses, and setting aside cash reserves for future repairs. A positive cash flow ensures your asset pays for itself, while negative cash flow means you are losing money every month just to hold the property.
How This Calculator Works
This Rental Property Cash Flow Calculator takes into account the four main pillars of real estate expenses (PITI: Principal, Interest, Taxes, Insurance) alongside operational costs like maintenance, vacancy, and HOA fees.
Gross Income: Total rent collected before expenses.
Operating Expenses: Taxes, insurance, maintenance, property management, and vacancy reserves.
Net Operating Income (NOI): Gross Income minus Operating Expenses. This metric evaluates the property's profitability excluding debt service.
Cash Flow: NOI minus Mortgage Payments (Debt Service).
Key Metrics Explained
Cash on Cash Return (CoC)
Cash on Cash Return measures the annual return the investor made on the property in relation to the amount of mortgage paid during the same year. It is considered one of the most important metrics because it provides a realistic look at the return on the actual cash you invested, rather than the total value of the property.
The Cap Rate indicates the rate of return that is expected to be generated on a real estate investment property. It is calculated by dividing the Net Operating Income (NOI) by the property asset value. It helps compare the profitability of different properties regardless of how they are financed.
What is a Good Cash Flow?
A "good" cash flow varies by market and investor strategy. However, a common rule of thumb for buy-and-hold investors is to aim for at least $100 to $200 per door, per month in pure profit after all expenses. For Cash on Cash return, many investors target 8% to 12% or higher, aiming to beat the average returns of the stock market.
function calculateCashFlow() {
// 1. Get Inputs
var price = parseFloat(document.getElementById('purchasePrice').value) || 0;
var downPaymentPercent = parseFloat(document.getElementById('downPaymentPercent').value) || 0;
var interestRate = parseFloat(document.getElementById('interestRate').value) || 0;
var termYears = parseFloat(document.getElementById('loanTerm').value) || 0;
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var vacancyRate = parseFloat(document.getElementById('vacancyRate').value) || 0;
var annualTaxes = parseFloat(document.getElementById('annualTaxes').value) || 0;
var annualInsurance = parseFloat(document.getElementById('annualInsurance').value) || 0;
var monthlyHOA = parseFloat(document.getElementById('monthlyHOA').value) || 0;
var maintenanceRate = parseFloat(document.getElementById('maintenanceRate').value) || 0;
var closingCosts = parseFloat(document.getElementById('closingCosts').value) || 0;
// 2. Calculate Mortgage (P&I)
var downPaymentAmount = price * (downPaymentPercent / 100);
var loanAmount = price – downPaymentAmount;
var monthlyInterest = (interestRate / 100) / 12;
var totalPayments = termYears * 12;
var mortgagePayment = 0;
if (interestRate > 0) {
mortgagePayment = loanAmount * (monthlyInterest * Math.pow(1 + monthlyInterest, totalPayments)) / (Math.pow(1 + monthlyInterest, totalPayments) – 1);
} else {
mortgagePayment = loanAmount / totalPayments;
}
// 3. Calculate Expenses
var monthlyVacancyCost = monthlyRent * (vacancyRate / 100);
var monthlyMaintenanceCost = monthlyRent * (maintenanceRate / 100);
var monthlyTaxes = annualTaxes / 12;
var monthlyInsurance = annualInsurance / 12;
// Total Operating Expenses (Excluding Mortgage)
var totalOperatingExpenses = monthlyTaxes + monthlyInsurance + monthlyHOA + monthlyMaintenanceCost + monthlyVacancyCost;
// Net Operating Income (NOI)
var monthlyNOI = monthlyRent – totalOperatingExpenses;
var annualNOI = monthlyNOI * 12;
// 4. Calculate Cash Flow
var monthlyCashFlow = monthlyNOI – mortgagePayment;
var annualCashFlow = monthlyCashFlow * 12;
// 5. Calculate Returns
var totalCashInvested = downPaymentAmount + closingCosts;
var cashOnCash = 0;
if (totalCashInvested > 0) {
cashOnCash = (annualCashFlow / totalCashInvested) * 100;
}
var capRate = 0;
if (price > 0) {
capRate = (annualNOI / price) * 100;
}
// 6. Display Results
var cashFlowEl = document.getElementById('resultCashFlow');
cashFlowEl.innerText = formatCurrency(monthlyCashFlow);
if (monthlyCashFlow >= 0) {
cashFlowEl.className = "result-value positive";
} else {
cashFlowEl.className = "result-value negative";
}
document.getElementById('resultCoC').innerText = cashOnCash.toFixed(2) + '%';
document.getElementById('resultCapRate').innerText = capRate.toFixed(2) + '%';
document.getElementById('resultCashNeeded').innerText = formatCurrency(totalCashInvested);
// Breakdown text
document.getElementById('breakdownMortgage').innerText = formatCurrency(mortgagePayment);
document.getElementById('breakdownExpenses').innerText = formatCurrency(totalOperatingExpenses);
document.getElementById('breakdownNOI').innerText = formatCurrency(monthlyNOI);
// Show results section
document.getElementById('resultsSection').style.display = 'block';
}
function formatCurrency(num) {
return '$' + num.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
}