Rental Property Cash Flow Calculator
Analyze the profitability of your real estate investment instantly.
Purchase Information
Monthly Income
Recurring Expenses
Monthly Financials
Total Monthly Income
$0.00
Monthly Mortgage (P&I)
$0.00
Total Monthly Expenses
$0.00
Monthly Cash Flow
$0.00
Annual Returns
Net Operating Income (NOI)
$0.00
Cap Rate
0.00%
Cash on Cash Return
0.00%
Understanding Your Rental Property Numbers
Investing in rental real estate is one of the most reliable ways to build wealth, but only if you buy the right deals. This Rental Property Cash Flow Calculator helps you strip away the emotion and look strictly at the numbers to determine if a property is a viable investment.
Key Metrics Explained
1. Cash Flow
Cash flow is the profit you bring in each month after all operating expenses and mortgage payments have been made. Positive cash flow is essential for a sustainable long-term hold. A negative cash flow ("alligator property") drains your reserves every month.
2. Net Operating Income (NOI)
NOI is calculated by subtracting all operating expenses from the total income produced by the property. Crucially, NOI excludes mortgage payments. It represents the inherent profitability of the property itself, regardless of how it is financed.
3. Cap Rate (Capitalization Rate)
Cap Rate measures the natural rate of return on the property. It is calculated as NOI / Purchase Price. This metric allows you to compare properties with different price points and financing structures on an apples-to-apples basis. A higher Cap Rate generally indicates a better return, though often comes with higher risk.
4. Cash on Cash Return
This is arguably the most important metric for leveraged investors. It measures the annual cash flow relative to the actual cash you invested (Down Payment + Closing Costs). It tells you how hard your specific dollars are working for you.
Common Expenses to Watch Out For
- Vacancy: Never assume 100% occupancy. A safe standard is 5-8%, representing about 2-4 weeks of vacancy per year.
- Maintenance (CapEx): Roofs leak and water heaters break. Budgeting 1% of the property value or 10% of rent annually ensures you aren't surprised by big bills.
- Management Fees: Even if you self-manage now, include this cost (usually 8-10% of rent) to ensure the deal still works if you decide to hire a professional later.