Rental Property Cash Flow Calculator
Analyze the profitability of your real estate investment
Investment Analysis
Monthly Cash Flow
$0.00
Income minus all expenses
Cash on Cash Return
0.00%
Monthly Breakdown
Mortgage Payment:
$0.00
Operating Expenses:
$0.00
Net Operating Income (NOI):
$0.00
function calculateRentalROI() {
// Get inputs
var price = parseFloat(document.getElementById('rp_price').value) || 0;
var downPercent = parseFloat(document.getElementById('rp_down_percent').value) || 0;
var rate = parseFloat(document.getElementById('rp_rate').value) || 0;
var term = parseFloat(document.getElementById('rp_term').value) || 30;
var rent = parseFloat(document.getElementById('rp_rent').value) || 0;
var tax = parseFloat(document.getElementById('rp_tax').value) || 0;
var insurance = parseFloat(document.getElementById('rp_insurance').value) || 0;
var hoa = parseFloat(document.getElementById('rp_hoa').value) || 0;
var vacancyRate = parseFloat(document.getElementById('rp_vacancy').value) || 0;
// Calculations
var downPayment = price * (downPercent / 100);
var loanAmount = price – downPayment;
// Mortgage Calculation (Principal + Interest)
var monthlyRate = rate / 100 / 12;
var numberOfPayments = term * 12;
var monthlyMortgage = 0;
if (rate > 0) {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else {
monthlyMortgage = loanAmount / numberOfPayments;
}
// Monthly Expenses
var monthlyTax = tax / 12;
var monthlyInsurance = insurance / 12;
var vacancyLoss = rent * (vacancyRate / 100);
var maintenanceEstimate = rent * 0.05; // Assuming 5% maintenance
var totalMonthlyOperatingExpenses = monthlyTax + monthlyInsurance + hoa + vacancyLoss + maintenanceEstimate;
var totalMonthlyExpenses = monthlyMortgage + totalMonthlyOperatingExpenses;
// Results
var monthlyCashFlow = rent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
var annualNOI = (rent * 12) – (totalMonthlyOperatingExpenses * 12);
// Cash Investment (Down Payment + approx 3% closing costs)
var closingCosts = price * 0.03;
var totalCashInvested = downPayment + closingCosts;
var cocReturn = (annualCashFlow / totalCashInvested) * 100;
var capRate = (annualNOI / price) * 100;
// Formatting currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
// Update DOM
document.getElementById('res_cashflow').innerHTML = formatter.format(monthlyCashFlow);
document.getElementById('res_cashflow').style.color = monthlyCashFlow >= 0 ? '#38a169' : '#e53e3e';
document.getElementById('res_coc').innerHTML = cocReturn.toFixed(2) + '%';
document.getElementById('res_cap').innerHTML = capRate.toFixed(2) + '%';
document.getElementById('res_mortgage').innerHTML = formatter.format(monthlyMortgage);
document.getElementById('res_opex').innerHTML = formatter.format(totalMonthlyOperatingExpenses);
document.getElementById('res_noi').innerHTML = formatter.format(annualNOI / 12);
}
// Initialize on load
calculateRentalROI();
Understanding Rental Property Cash Flow
Success in real estate investing ultimately comes down to the numbers. While appreciation is a powerful wealth builder, positive cash flow is what keeps your investment sustainable day-to-day. This Rental Property Cash Flow Calculator is designed to help investors evaluate the viability of a potential rental property purchase by analyzing income against all associated expenses.
What is Cash on Cash Return?
Cash on Cash (CoC) return is one of the most important metrics for real estate investors. Unlike a standard Return on Investment (ROI) calculation which might look at the total value of the asset, CoC specifically measures the annual return you make on the actual cash you invested.
The formula is:
Cash on Cash Return = Annual Pre-Tax Cash Flow / Total Cash Invested
A good Cash on Cash return varies by market and strategy, but many investors target 8-12% for long-term buy-and-hold properties.
Cap Rate vs. Cash Flow
This calculator provides both Cash Flow and Cap Rate, but they serve different purposes:
- Cash Flow: Tells you how much money lands in your pocket every month after paying the mortgage and bills.
- Cap Rate (Capitalization Rate): Measures the natural rate of return of the property assuming you paid all cash (no mortgage). It helps compare the profitability of the building itself, regardless of financing.
Estimating Expenses Accurately
One of the most common mistakes new investors make is underestimating expenses. When using this calculator, ensure you account for:
- Vacancy: Properties won't be occupied 365 days a year. A 5-8% vacancy rate is a standard conservative estimate.
- Maintenance: Even if a house is new, things break. Budgeting 5-10% of gross rent for repairs is prudent.
- Capital Expenditures (CapEx): Major items like roofs and HVAC systems eventually need replacement.
Use the inputs above to adjust your down payment and loan terms to see how leverage impacts your monthly cash flow.