.rc-row {
display: flex;
flex-wrap: wrap;
margin: 0 -10px;
}
.rc-col {
flex: 1;
min-width: 250px;
padding: 0 10px;
margin-bottom: 15px;
}
.rc-label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #333;
font-size: 14px;
}
.rc-input {
width: 100%;
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.rc-input:focus {
border-color: #007bff;
outline: none;
}
.rc-section-title {
width: 100%;
font-size: 18px;
color: #2c3e50;
border-bottom: 2px solid #eee;
margin-bottom: 15px;
padding-bottom: 5px;
margin-top: 10px;
}
.rc-btn {
display: block;
width: 100%;
padding: 15px;
background-color: #28a745;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background 0.3s;
margin-top: 10px;
}
.rc-btn:hover {
background-color: #218838;
}
#rc-results {
margin-top: 30px;
padding: 20px;
background-color: #f8f9fa;
border-radius: 6px;
border: 1px solid #e9ecef;
display: none;
}
.rc-result-item {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
font-size: 16px;
}
.rc-result-value {
font-weight: bold;
color: #2c3e50;
}
.rc-positive { color: #28a745; }
.rc-negative { color: #dc3545; }
.rc-highlight {
font-size: 22px;
border-top: 1px solid #ddd;
padding-top: 10px;
margin-top: 10px;
}
.article-content {
margin-top: 40px;
line-height: 1.6;
color: #444;
}
.article-content h2 { color: #2c3e50; margin-top: 30px; }
.article-content h3 { color: #34495e; margin-top: 20px; }
.article-content ul { padding-left: 20px; }
.article-content li { margin-bottom: 8px; }
function calculateRental() {
// Get inputs
var price = parseFloat(document.getElementById('rc-price').value) || 0;
var downPercent = parseFloat(document.getElementById('rc-down').value) || 0;
var rate = parseFloat(document.getElementById('rc-rate').value) || 0;
var term = parseFloat(document.getElementById('rc-term').value) || 0;
var rent = parseFloat(document.getElementById('rc-rent').value) || 0;
var vacancyPercent = parseFloat(document.getElementById('rc-vacancy').value) || 0;
var taxYear = parseFloat(document.getElementById('rc-tax').value) || 0;
var insuranceYear = parseFloat(document.getElementById('rc-insurance').value) || 0;
var maintenancePercent = parseFloat(document.getElementById('rc-maintenance').value) || 0;
var managementPercent = parseFloat(document.getElementById('rc-management').value) || 0;
// Calculations
var downPayment = price * (downPercent / 100);
var loanAmount = price – downPayment;
// Mortgage Calculation
var monthlyRate = rate / 100 / 12;
var numPayments = term * 12;
var mortgagePayment = 0;
if (rate > 0) {
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
} else {
mortgagePayment = loanAmount / numPayments;
}
// Income Calculations
var vacancyLoss = rent * (vacancyPercent / 100);
var effectiveIncome = rent – vacancyLoss;
// Expense Calculations
var monthlyTax = taxYear / 12;
var monthlyInsurance = insuranceYear / 12;
var monthlyMaintenance = rent * (maintenancePercent / 100);
var monthlyManagement = rent * (managementPercent / 100);
// Operating Expenses (excluding mortgage)
var operatingExpenses = monthlyTax + monthlyInsurance + monthlyMaintenance + monthlyManagement;
var totalMonthlyExpenses = operatingExpenses + mortgagePayment;
// Metrics
var monthlyNOI = effectiveIncome – operatingExpenses;
var monthlyCashFlow = monthlyNOI – mortgagePayment;
var annualCashFlow = monthlyCashFlow * 12;
var annualNOI = monthlyNOI * 12;
// ROI Metrics
var cashInvested = downPayment; // Simplified to just down payment for this example
var cashOnCash = 0;
if (cashInvested > 0) {
cashOnCash = (annualCashFlow / cashInvested) * 100;
}
var capRate = 0;
if (price > 0) {
capRate = (annualNOI / price) * 100;
}
// Display Results
document.getElementById('res-mortgage').innerHTML = "$" + mortgagePayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res-expenses').innerHTML = "$" + totalMonthlyExpenses.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res-noi').innerHTML = "$" + monthlyNOI.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
var cashFlowEl = document.getElementById('res-cashflow');
cashFlowEl.innerHTML = "$" + monthlyCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
if(monthlyCashFlow >= 0) {
cashFlowEl.className = "rc-result-value rc-positive";
} else {
cashFlowEl.className = "rc-result-value rc-negative";
}
document.getElementById('res-coc').innerHTML = cashOnCash.toFixed(2) + "%";
document.getElementById('res-cap').innerHTML = capRate.toFixed(2) + "%";
document.getElementById('rc-results').style.display = 'block';
}
Purchase & Loan Details
Income & Expenses
Monthly Mortgage Payment (P&I):
$0.00
Total Monthly Expenses:
$0.00
Net Operating Income (NOI) / Mo:
$0.00
Monthly Cash Flow:
$0.00
Cash on Cash Return:
0.00%
Cap Rate:
0.00%
How to Calculate Rental Property Cash Flow
Investing in real estate is one of the most reliable ways to build wealth, but it relies heavily on the numbers working in your favor. This Rental Property Cash Flow Calculator is designed to help investors quickly determine the viability of a potential investment property by analyzing income, expenses, and financing costs.
Why Cash Flow is King
Cash flow is the net amount of money moving in and out of a business. In real estate, positive cash flow means the property's income exceeds all expenses, including the mortgage. This surplus income is essentially passive income that goes straight into your pocket.
A negative cash flow property (often called an "alligator") costs you money every month to hold. While some investors accept this in hopes of high appreciation, it is generally considered a higher-risk strategy.
Understanding the Metrics
When analyzing a deal, you shouldn't rely on just one number. This calculator provides three critical metrics:
- Monthly Cash Flow: The actual dollar amount left over after paying all operating expenses and debt service. Formula: (Gross Rent – Vacancy – Expenses – Mortgage).
- Cash on Cash Return (CoC): This measures the annual return on the actual cash you invested (down payment). It allows you to compare real estate returns against other investments like stocks. A CoC of 8-12% is often considered a solid target for rentals.
- Cap Rate (Capitalization Rate): This metric evaluates the profitability of a property independent of its financing. It is calculated by dividing the Net Operating Income (NOI) by the purchase price. It helps compare properties as if they were bought with all cash.
Realistic Expense Assumptions
One of the biggest mistakes new investors make is underestimating expenses. When using this calculator, ensure you account for:
- Vacancy: Properties won't be rented 365 days a year. A 5-8% vacancy rate is a standard conservative estimate.
- Maintenance & CapEx: Roofs leak and toilets break. Setting aside 10-15% of the rent every month ensures you have funds when repairs are needed.
- Property Management: Even if you plan to self-manage, it is wise to factor in a 8-10% management fee. This ensures the deal still works if you decide to hire a professional later.
Example Calculation
Imagine you purchase a single-family home for $250,000 with 20% down ($50,000). The interest rate is 6.5% on a 30-year term. You rent it out for $2,200/month.
After accounting for taxes ($3,000/yr), insurance ($1,200/yr), and setting aside reserves for maintenance and vacancy, you might find your cash flow is $200/month. This calculator helps you tweak the offer price or rent expectations to hit your target return on investment.