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Rental Property Cash Flow Calculator

30 Years 15 Years

Investment Analysis

Monthly Mortgage (P&I) $0.00
Total Monthly Expenses $0.00
Net Monthly Cash Flow $0.00
Cash on Cash Return 0.00%

What is Rental Property Cash Flow?

Cash flow is the lifeblood of any real estate investment. Put simply, it is the difference between your monthly rental income and your total monthly expenses. Positive cash flow means your property is generating profit every month after all bills are paid, while negative cash flow implies you are losing money to hold the asset.

Using a Rental Property Cash Flow Calculator helps investors determine if a potential deal makes financial sense before signing the contract. By factoring in mortgage payments, taxes, insurance, and maintenance reserves, you can get a clear picture of your actual return on investment (ROI).

How to Calculate Cash on Cash Return

While cash flow measures the raw dollar amount, Cash on Cash (CoC) Return measures the efficiency of your invested capital. It is calculated using the following formula:

CoC Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100

For example, if you invest $50,000 as a down payment and the property generates $3,000 in net positive cash flow per year, your Cash on Cash return would be 6%. Most investors aim for a CoC return between 8% and 12%, though this varies by market.

Key Expenses to Consider

When estimating expenses for a rental property, many new investors overlook hidden costs. Ensure you include:

  • Mortgage Principal & Interest: The primary debt service.
  • Property Taxes: Generally 1-2% of the property value annually.
  • Insurance: Landlord policies are typically 20% higher than homeowner policies.
  • Maintenance & CapEx: Setting aside 5-10% of rent for repairs (roof, HVAC, etc.).
  • Vacancy Rate: Accounting for months when the property sits empty (usually 5-8%).

Why Use This Calculator?

Real estate markets move quickly. Having a reliable tool to instantly compute mortgage payments and project net income allows you to analyze multiple deals per day. Whether you are looking at a single-family home or a multi-unit apartment, understanding the numbers is the first step to building long-term wealth through real estate.

function calculateRental() { // 1. Get Input Values var price = parseFloat(document.getElementById('purchasePrice').value); var down = parseFloat(document.getElementById('downPayment').value); var rate = parseFloat(document.getElementById('interestRate').value); var termYears = parseFloat(document.getElementById('loanTerm').value); var rent = parseFloat(document.getElementById('monthlyRent').value); var taxes = parseFloat(document.getElementById('annualTaxes').value); var insurance = parseFloat(document.getElementById('annualInsurance').value); var maintenance = parseFloat(document.getElementById('monthlyMaintenance').value); // 2. Validate Inputs if (isNaN(price) || isNaN(down) || isNaN(rate) || isNaN(termYears) || isNaN(rent)) { alert("Please enter valid numbers for all fields."); return; } // 3. Calculate Mortgage (Principal + Interest) // Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ] var loanAmount = price – down; var monthlyRate = (rate / 100) / 12; var totalPayments = termYears * 12; var mortgagePayment = 0; if (monthlyRate > 0) { mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, totalPayments)) / (Math.pow(1 + monthlyRate, totalPayments) – 1); } else { mortgagePayment = loanAmount / totalPayments; } // 4. Calculate Total Monthly Expenses var monthlyTaxes = taxes / 12; var monthlyInsurance = insurance / 12; var totalExpenses = mortgagePayment + monthlyTaxes + monthlyInsurance + maintenance; // 5. Calculate Cash Flow var monthlyCashFlow = rent – totalExpenses; var annualCashFlow = monthlyCashFlow * 12; // 6. Calculate Cash on Cash Return // Assuming closing costs are roughly 3% of purchase price for calculation simplicty if not asked, // but here we define Total Cash Invested as just Down Payment to match inputs provided, // or we could add a standard closing cost estimate. // For strictness to inputs: Total Invested = Down Payment. var totalInvested = down; var cocReturn = 0; if (totalInvested > 0) { cocReturn = (annualCashFlow / totalInvested) * 100; } // 7. Update UI document.getElementById('resultsArea').style.display = 'block'; // Format Currency Function var fmt = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' }); document.getElementById('resMortgage').innerText = fmt.format(mortgagePayment); document.getElementById('resExpenses').innerText = fmt.format(totalExpenses); var cfElement = document.getElementById('resCashFlow'); cfElement.innerText = fmt.format(monthlyCashFlow); // Color coding for cash flow if (monthlyCashFlow >= 0) { cfElement.className = "seo-calc-result-value positive"; } else { cfElement.className = "seo-calc-result-value negative"; } var cocElement = document.getElementById('resCoc'); cocElement.innerText = cocReturn.toFixed(2) + "%"; if (cocReturn >= 0) { cocElement.className = "seo-calc-result-value positive"; } else { cocElement.className = "seo-calc-result-value negative"; } }

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