Rental Property Cash Flow Calculator
Analyze your real estate investment performance
Acquisition & Loan
Income & Expenses (Monthly)
Investment Analysis
Monthly Principal & Interest:
$0.00
Total Monthly Expenses:
$0.00
Net Monthly Cash Flow:
$0.00
Annual Cash Flow:
$0.00
Cash on Cash Return (ROI):
0.00%
Mastering Rental Property Analysis
Success in real estate investing depends on the numbers. This Rental Property Cash Flow Calculator helps investors determine the viability of a potential investment by analyzing income, expenses, and financing costs. Understanding these metrics is crucial for building a profitable portfolio.
How to Calculate Rental Cash Flow
Cash flow is the money left over after all expenses are paid. The basic formula used in this calculator is:
- Gross Income: Total rent collected per month.
- Operating Expenses: Taxes, insurance, HOA fees, maintenance, and vacancy reserves.
- Debt Service: The monthly mortgage payment (Principal and Interest).
Cash Flow = Gross Income – (Operating Expenses + Debt Service)
Understanding Cash on Cash Return (CoC)
The Cash on Cash Return is arguably the most important metric for rental investors. It measures the annual return on the actual cash you invested (down payment), rather than the total price of the property.
For example, if you invest $50,000 as a down payment and the property generates $5,000 in positive cash flow per year, your CoC return is 10%. This metric allows you to compare real estate returns against other investment vehicles like stocks or bonds.
What is a Good Cash Flow?
While "good" is subjective, many investors aim for:
- Cash Flow per Door: $100 – $300 per month per unit.
- Cash on Cash Return: 8% – 12% is generally considered a solid return in most markets, though aggressive investors may look for 15%+.