Rental Property Cash Flow Calculator
Purchase & Loan Details
30 Years
15 Years
Income & Expenses
Reserves (Estimates)
Please enter valid positive numbers for all fields.
Monthly Financial Analysis
Monthly Income
$0.00
Total Monthly Expenses
$0.00
Net Monthly Cash Flow
$0.00
Cash on Cash Return
0.00%
Expense Breakdown:
- Mortgage (P&I):
- Taxes & Insurance:
- Vacancy & Maint (Reserves):
- HOA/Other:
How to Analyze a Rental Property Investment
Investing in real estate is one of the most reliable ways to build wealth, but simply buying a property and renting it out doesn't guarantee a profit. To be a successful real estate investor, you must understand the numbers behind the deal. A detailed Rental Property Cash Flow Calculator helps you determine if a property is an asset (puts money in your pocket) or a liability (takes money out).
What is Cash Flow?
Cash flow is the net amount of cash moving into and out of a business. For a rental property, it is calculated as:
Cash Flow = Total Rental Income – Total Expenses
Positive cash flow means the property generates profit every month after paying the mortgage and all operating costs. Negative cash flow means you are losing money every month to hold the property, often hoping for future appreciation.
Key Metrics Used in This Calculator
1. Cash on Cash Return (CoC)
This is arguably the most important metric for ROI in real estate. It measures the annual cash income earned on the cash invested in a property.
- Formula: (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
- Good CoC: Generally, investors look for 8-12% or higher, depending on the market and risk level.
2. Operating Expenses vs. Reserves
Many new investors make the mistake of only calculating the mortgage, tax, and insurance. However, you must account for "invisible" expenses:
- Vacancy Rate: Properties are rarely occupied 365 days a year. Setting aside 5-8% of rent helps cover periods between tenants.
- Maintenance & CapEx: Roofs leak and toilets break. Allocating 5-10% ensures you have funds ready for repairs without killing your monthly profit.
How to Use This Calculator
Enter the Purchase Price and your financing details (Down Payment, Interest Rate). Be sure to accurately estimate your Property Taxes and Insurance, as these vary significantly by location. Finally, adjust the Vacancy and Maintenance percentages based on the age of the home and local rental market demand.
The calculator will output your estimated monthly cash flow and your Cash on Cash return, giving you a clear picture of the investment's potential performance.