How to Calculate Mortgage Rate in Excel – Cost Calculator

Rental Property Cash Flow Calculator

Analyze the potential profitability of your real estate investment.

Purchase & Loan

Purchase Price ($)

Down Payment ($)

Interest Rate (%)

Loan Term (Years)

Income & Expenses

Monthly Rental Income ($)

Annual Property Tax ($)

Annual Insurance ($)

Monthly Maintenance ($)

Vacancy Rate (%)

Monthly Financial Analysis

Gross Monthly Rent: –

Principal & Interest (Mortgage): –

Operating Expenses (Tax, Ins, Maint, Vacancy): –

Net Monthly Cash Flow: –

Cash on Cash Return (Annual): –

Understanding Rental Property Cash Flow

Investing in real estate is one of the most reliable ways to build wealth, but it relies heavily on the math working in your favor. This Rental Property Cash Flow Calculator is designed to help investors quickly determine if a specific property will generate profit (positive cash flow) or cost money to hold (negative cash flow).

What is Rental Cash Flow?

Cash flow is the net amount of cash moving in and out of a business. In real estate, it is the difference between your rental income and all the expenses associated with the property.

The basic formula is:
Cash Flow = Gross Rental Income – Total Expenses

Key Metrics in This Calculator

Principal & Interest: This is your core mortgage payment based on the loan amount, interest rate, and term.
Operating Expenses: These are the ongoing costs of running the property. Our calculator includes property taxes, insurance, monthly maintenance reserves, and a vacancy factor (money set aside for when the unit is empty).
Cash on Cash Return (CoC): This is a return on investment (ROI) metric that measures the annual cash flow relative to the total cash invested (Down Payment). A CoC of 8-12% is often considered a solid benchmark for rental properties.

Example Calculation

Consider a property purchased for $250,000 with a $50,000 down payment. If you rent it out for $2,200/month, but your mortgage, taxes, insurance, and maintenance total $1,900/month, your Net Monthly Cash Flow is $300. This means the property puts $300 in your pocket every month while the tenant pays down your loan.

Why Vacancy Rates Matter

Many new investors make the mistake of assuming a property will be rented 100% of the time. In reality, tenants move out. Including a vacancy rate (typically 5% to 10%) ensures you are financially prepared for turnover periods without dipping into your personal savings.