Rental Property Cash Flow Calculator
Analyze your potential real estate investment deals instantly. This calculator helps investors determine the monthly cash flow, Cash-on-Cash Return, and Cap Rate for residential rental properties.
Purchase Info
Income
Expenses
Please enter valid positive numbers for all fields.
Investment Analysis
Monthly Cash Flow:
$0.00
Net Operating Income (Monthly):
$0.00
Cash on Cash Return (CoC):
0.00%
Cap Rate:
0.00%
Total Monthly Expenses:
$0.00
Estimated Mortgage Payment:
$0.00
Understanding Real Estate Cash Flow
Cash flow is the lifeblood of any rental property investment. Simply put, it is the money left over after all expenses, including the mortgage, have been paid from the rental income. A positive cash flow indicates a profitable investment, while negative cash flow means the property is costing you money every month.
How is Rental Cash Flow Calculated?
The formula for calculating monthly cash flow is straightforward:
Cash Flow = Total Income – Total Expenses
However, getting an accurate number requires a detailed breakdown of expenses. Our calculator considers:
- Operating Expenses: Property taxes, insurance, HOA fees, maintenance, and vacancy reserves.
- Debt Service: The principal and interest payments on your mortgage.
Key Investment 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 ROI metrics in real estate.
Formula: Annual Cash Flow / Total Cash Invested
For example, if you invest $50,000 (down payment + closing costs) and the property generates $5,000 in net cash flow per year, your CoC return is 10%.
Cap Rate (Capitalization Rate)
The Cap Rate indicates the rate of return that is expected to be generated on a real estate investment property. Unlike CoC, Cap Rate ignores financing (mortgage) and looks strictly at the property's ability to generate profit.
Formula: Net Operating Income (NOI) / Purchase Price
Net Operating Income (NOI)
NOI is the annual income generated by an income-producing property after deducting all operating expenses but before deducting taxes and financing costs. This is a critical figure for determining the property's raw profitability.
Tips for Maximizing Rental Profitability
- Minimize Vacancy: A 5-8% vacancy rate is standard, but keeping tenants happy can lower this significantly.
- Accurate Maintenance Estimates: Always budget 5-10% of rent for maintenance. Repairs are inevitable.
- Review Rents Regularly: Ensure your rent matches the current market value to avoid losing potential income.