Loan Consolidation Interest Rate Calculator

Rental Property Cash Flow Calculator

function calculateCashFlow() { // Get input values var price = parseFloat(document.getElementById('purchasePrice').value); var downPercent = parseFloat(document.getElementById('downPayment').value); var interest = parseFloat(document.getElementById('interestRate').value); var years = parseFloat(document.getElementById('loanTerm').value); var income = parseFloat(document.getElementById('rentIncome').value); var otherExpenses = parseFloat(document.getElementById('expenses').value); // Validation if (isNaN(price) || isNaN(downPercent) || isNaN(interest) || isNaN(years) || isNaN(income) || isNaN(otherExpenses)) { alert("Please fill in all fields with valid numbers."); return; } // Loan Calculation var downPaymentAmount = price * (downPercent / 100); var loanAmount = price – downPaymentAmount; var monthlyRate = (interest / 100) / 12; var numberOfPayments = years * 12; // Mortgage (Principal & Interest) Formula var mortgage = 0; if (interest === 0) { mortgage = loanAmount / numberOfPayments; } else { mortgage = (loanAmount * monthlyRate) / (1 – Math.pow(1 + monthlyRate, -numberOfPayments)); } // Cash Flow Calculations var totalMonthlyExpenses = mortgage + otherExpenses; var monthlyCashFlow = income – totalMonthlyExpenses; var annualCashFlow = monthlyCashFlow * 12; // Cash on Cash Return Calculation // CoC = Annual Cash Flow / Total Cash Invested (Down Payment) // Note: For simplicity, this calc assumes closing costs are negligible or included in down payment thought process, // though strictly CoC should include closing/rehab costs. var cocReturn = 0; if (downPaymentAmount > 0) { cocReturn = (annualCashFlow / downPaymentAmount) * 100; } // Display Results document.getElementById('resMortgage').innerText = "$" + mortgage.toFixed(2); document.getElementById('resTotalExp').innerText = "$" + totalMonthlyExpenses.toFixed(2); var cashFlowEl = document.getElementById('resCashFlow'); cashFlowEl.innerText = "$" + monthlyCashFlow.toFixed(2); cashFlowEl.className = "result-value " + (monthlyCashFlow >= 0 ? "positive" : "negative"); var annualFlowEl = document.getElementById('resAnnualFlow'); annualFlowEl.innerText = "$" + annualCashFlow.toFixed(2); annualFlowEl.className = "result-value " + (annualCashFlow >= 0 ? "positive" : "negative"); var cocEl = document.getElementById('resCoC'); cocEl.innerText = cocReturn.toFixed(2) + "%"; cocEl.className = "result-value " + (cocReturn >= 0 ? "positive" : "negative"); // Show results div document.getElementById('resultsArea').style.display = "block"; }

Understanding Rental Property Cash Flow

Investing in real estate is one of the most reliable ways to build wealth, but the success of an investment property hinges on one critical metric: Cash Flow. This Rental Property Cash Flow Calculator helps investors analyze the profitability of a potential purchase by accounting for mortgage costs, operating expenses, and rental income.

What is Cash Flow?

Cash flow is the net amount of money moving in and out of your rental business. It is calculated as:

Cash Flow = Total Rental Income – Total Expenses

Positive Cash Flow: Your income exceeds your expenses. This is the goal of most buy-and-hold investors, as it provides passive income.

Negative Cash Flow: Your expenses exceed your income. This implies you are losing money every month to hold the property, often banking solely on appreciation.

Key Metrics Explained

• Mortgage Payment (P&I): The monthly cost of your loan principal and interest calculated based on the loan amount, interest rate, and term.
• Monthly Expenses: These are the operating costs of the property. When using this calculator, ensure you sum up property taxes, landlord insurance, HOA fees, vacancy reserves (usually 5-10%), and maintenance reserves.
• Cash on Cash Return (CoC): This measures the annual return on the actual cash you invested (down payment). It is calculated by dividing annual pre-tax cash flow by the total cash invested. A CoC return of 8-12% is generally considered solid for residential real estate.

How to Use This Calculator

To get the most accurate results, input realistic numbers based on current market data:

1. Purchase Price: Enter the negotiated price of the property.
2. Down Payment: Enter the percentage you intend to put down (e.g., 20% or 25% for investment loans).
3. Interest Rate: Check current mortgage rates for investment properties, which are typically 0.5% – 1% higher than owner-occupied rates.
4. Rental Income: Use comparable rental listings in the area to estimate fair market rent.
5. Monthly Expenses: Be conservative. Underestimating expenses is the #1 mistake new investors make. Don't forget to account for future repairs!

Why Cash Flow Matters

While appreciation (the property increasing in value over time) is a powerful wealth builder, it is speculative. Cash flow, however, is realized immediately. Positive cash flow provides a safety buffer against market downturns, allowing you to hold the asset indefinitely while your tenants pay down your mortgage.