Please enter valid positive numbers for all fields.
Loan Amount:–
Monthly Mortgage (P&I):–
Total Monthly Expenses:–
Net Monthly Cash Flow:–
Annual Cash Flow:–
Cash on Cash Return (CoC):–
function calculateRentalMetrics() {
// Get Input Values
var price = parseFloat(document.getElementById('purchasePrice').value);
var downPct = parseFloat(document.getElementById('downPayment').value);
var rate = parseFloat(document.getElementById('interestRate').value);
var term = parseFloat(document.getElementById('loanTerm').value);
var rent = parseFloat(document.getElementById('monthlyRent').value);
var expenses = parseFloat(document.getElementById('monthlyExpenses').value);
var errorDisplay = document.getElementById('errorDisplay');
var resultsArea = document.getElementById('resultsArea');
// Validation
if (isNaN(price) || isNaN(downPct) || isNaN(rate) || isNaN(term) || isNaN(rent) || isNaN(expenses) || term 0) {
cashOnCash = (annualCashFlow / downPaymentAmount) * 100;
}
// Display Results (Formatting as Currency)
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
document.getElementById('resLoanAmount').innerText = formatter.format(loanAmount);
document.getElementById('resMortgage').innerText = formatter.format(monthlyMortgage);
document.getElementById('resTotalExp').innerText = formatter.format(totalMonthlyExpenses);
var cashFlowEl = document.getElementById('resCashFlow');
cashFlowEl.innerText = formatter.format(netMonthlyCashFlow);
cashFlowEl.style.color = netMonthlyCashFlow >= 0 ? '#27ae60' : '#c0392b';
var annualFlowEl = document.getElementById('resAnnualFlow');
annualFlowEl.innerText = formatter.format(annualCashFlow);
annualFlowEl.style.color = annualCashFlow >= 0 ? '#27ae60' : '#c0392b';
var cocEl = document.getElementById('resCoC');
cocEl.innerText = cashOnCash.toFixed(2) + '%';
cocEl.style.color = cashOnCash >= 0 ? '#2980b9' : '#c0392b';
resultsArea.style.display = 'block';
}
Understanding Rental Property Cash Flow
Investing in real estate is a powerful way to build wealth, but the success of any rental property hinges on the math. This Rental Property Cash Flow Calculator is designed to help investors quickly determine the viability of a potential investment deal.
How is Cash Flow Calculated?
Cash flow is essentially the profit you take home each month after all obligations are paid. The formula used in this calculator is:
Cash Flow = Total Monthly Rental Income – (Mortgage Payment + Operating Expenses)
Operating expenses typically include property taxes, landlord insurance, homeowners association (HOA) fees, and a budget for maintenance and repairs.
What is Cash on Cash Return?
While cash flow tells you how much money you make monthly, Cash on Cash Return (CoC) tells you how hard your money is working for you. It compares your annual profit to the actual cash you invested (primarily your down payment).
For example, if you invest $50,000 as a down payment and the property generates $5,000 in annual positive cash flow, your CoC return is 10%. This metric allows you to compare real estate returns against other investment vehicles like stocks or bonds.
The 1% Rule and Good Benchmarks
Many investors use the "1% Rule" as a quick filter. This rule suggests that the monthly rent should be at least 1% of the purchase price. For a $200,000 home, you would look for $2,000 in rent. While high interest rates can make this harder to achieve, positive cash flow is non-negotiable for long-term hold strategies. A healthy Cash on Cash return is typically considered to be between 8% and 12% in a balanced market.