Rental Property Cash Flow Calculator
Purchase Information
Income Information
Monthly Expenses
Monthly Cash Flow
Gross Income:
$0.00
Vacancy Loss:
-$0.00
Operating Expenses:
-$0.00
Net Operating Income (NOI):
$0.00
Mortgage Payment (P&I):
-$0.00
Monthly Cash Flow:
$0.00
Investment Returns
Cash on Cash Return:
0.00%
Cap Rate:
0.00%
Total Cash Invested:
$0.00
*Note: "Total Cash Invested" assumes 3% closing costs in addition to the down payment for the Cash on Cash calculation.
Mastering Rental Property Analysis
Investing in real estate is a powerful way to build wealth, but simply buying a property and renting it out doesn't guarantee a profit. Successful investors rely on rigorous mathematical analysis to ensure a property will generate positive cash flow. This Rental Property Cash Flow Calculator helps you break down the income, expenses, and debt service associated with a potential investment.
Key Metrics Explained
1. Net Operating Income (NOI)
NOI is one of the most important figures in real estate. It represents the profitability of a property before adding in any costs from financing or taxes. It is calculated as:
NOI = (Total Rental Income – Vacancy Losses) – Operating Expenses
Operating expenses include property taxes, insurance, management fees, maintenance, and HOA fees, but exclude mortgage payments.
2. Cash Flow
This is the money left in your pocket every month after all expenses and mortgage payments are made. Positive cash flow allows you to weather vacancies and repairs without dipping into your personal savings.
Cash Flow = NOI – Debt Service (Mortgage Payment)
3. Cash on Cash Return (CoC)
While Cash Flow tells you how much money you make, Cash on Cash Return tells you how hard your money is working. It expresses your annual cash flow as a percentage of the total cash you actually invested (Down Payment + Closing Costs + Rehab Costs).
Generally, investors look for a CoC return between 8% and 12%, though this varies by market strategy.
Common Expenses to Watch Out For
- Vacancy Rate: No property is occupied 100% of the time. We recommend estimating 5% to 8% for vacancy.
- Maintenance & CapEx: Even newly renovated homes need repairs. Setting aside 5-10% of rent for routine maintenance and another 5-10% for Capital Expenditures (big items like roofs or HVAC) is prudent.
- Property Management: If you hire a professional manager, expect to pay 8-10% of the monthly rent.
How to Use This Calculator
Enter your purchase details, financing terms, and estimated rental income. Be honest with your expense estimates. It is always better to overestimate expenses and underestimate income to ensure your investment is safe. If the numbers turn green (positive cash flow), you may have found a great deal!