Analyze your real estate investment deals instantly.
Purchase Information
Income & Occupancy
Recurring Expenses
Analysis Results
Monthly Cash Flow$0.00
Cash on Cash Return (CoC)0.00%
Cap Rate0.00%
Net Operating Income (Monthly)$0.00
Total Cash Invested$0.00
Total Monthly Expenses$0.00
function calculateRental() {
// Retrieve inputs
var price = parseFloat(document.getElementById('rpcPrice').value) || 0;
var downPerc = parseFloat(document.getElementById('rpcDown').value) || 0;
var rate = parseFloat(document.getElementById('rpcRate').value) || 0;
var term = parseFloat(document.getElementById('rpcTerm').value) || 0;
var closing = parseFloat(document.getElementById('rpcClosing').value) || 0;
var rent = parseFloat(document.getElementById('rpcRent').value) || 0;
var vacancyPerc = parseFloat(document.getElementById('rpcVacancy').value) || 0;
var taxYearly = parseFloat(document.getElementById('rpcTax').value) || 0;
var insuranceYearly = parseFloat(document.getElementById('rpcInsurance').value) || 0;
var hoa = parseFloat(document.getElementById('rpcHOA').value) || 0;
var maintPerc = parseFloat(document.getElementById('rpcMaintenance').value) || 0;
var mgmtPerc = parseFloat(document.getElementById('rpcManagement').value) || 0;
// Calculations
var downAmount = price * (downPerc / 100);
var loanAmount = price – downAmount;
var totalCashInvested = downAmount + closing;
// Mortgage Calculation
var mortgagePayment = 0;
if (loanAmount > 0) {
if (rate > 0) {
var monthlyRate = (rate / 100) / 12;
var numPayments = term * 12;
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
} else {
mortgagePayment = loanAmount / (term * 12);
}
}
// Variable Expenses
var vacancyCost = rent * (vacancyPerc / 100);
var maintCost = rent * (maintPerc / 100);
var mgmtCost = rent * (mgmtPerc / 100);
// Fixed Expenses
var taxMonthly = taxYearly / 12;
var insuranceMonthly = insuranceYearly / 12;
var totalOperatingExpenses = taxMonthly + insuranceMonthly + hoa + vacancyCost + maintCost + mgmtCost;
var totalMonthlyExpenses = totalOperatingExpenses + mortgagePayment;
// Metrics
var monthlyCashFlow = rent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
var noiMonthly = rent – totalOperatingExpenses;
var noiAnnual = noiMonthly * 12;
var cocReturn = 0;
if (totalCashInvested > 0) {
cocReturn = (annualCashFlow / totalCashInvested) * 100;
}
var capRate = 0;
if (price > 0) {
capRate = (noiAnnual / price) * 100;
}
// Display Results
var resultDiv = document.getElementById('rpcResults');
resultDiv.style.display = 'block';
document.getElementById('resCashFlow').innerText = formatCurrency(monthlyCashFlow);
document.getElementById('resCashFlow').className = monthlyCashFlow >= 0 ? 'rpc-result-value rpc-highlight' : 'rpc-result-value rpc-highlight-neg';
document.getElementById('resCoC').innerText = cocReturn.toFixed(2) + '%';
document.getElementById('resCapRate').innerText = capRate.toFixed(2) + '%';
document.getElementById('resNOI').innerText = formatCurrency(noiMonthly);
document.getElementById('resInvested').innerText = formatCurrency(totalCashInvested);
document.getElementById('resExpenses').innerText = formatCurrency(totalMonthlyExpenses);
}
function formatCurrency(num) {
return '$' + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
Understanding Rental Property Analysis
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 succeed, investors must meticulously analyze the numbers. A Rental Property Cash Flow Calculator is an essential tool that helps investors determine if a property will generate positive income (cash flow) or drain their resources.
What is Cash Flow in Real Estate?
Cash flow is the net amount of cash moving in and out of an investment. In rental properties, it is calculated as:
Gross Income: Total rent collected.
Minus Operating Expenses: Taxes, insurance, HOA, maintenance, management fees, and vacancy reserves.
Minus Debt Service: The monthly mortgage principal and interest payment.
If the result is positive, the property puts money in your pocket every month. If negative, you are losing money to hold the asset.
Key Metrics Explained
This calculator provides several critical metrics to evaluate investment performance:
1. Cash on Cash Return (CoC)
This is often considered the most important metric for rental investors. It measures the annual return on the actual cash you invested (down payment + closing costs), rather than the total value of the property. A CoC of 8-12% is generally considered a solid return in many markets.
Formula: (Annual Cash Flow / Total Cash Invested) × 100
2. Cap Rate (Capitalization Rate)
Cap Rate measures the property's natural rate of return assuming it was bought with all cash (no loan). It allows you to compare properties apples-to-apples without the influence of financing terms.
Formula: (Net Operating Income / Purchase Price) × 100
3. Net Operating Income (NOI)
NOI is the profitability of the property before mortgage payments. Banks look closely at NOI when deciding whether to lend on a commercial investment property.
Using the "50% Rule" and "1% Rule"
While this calculator provides exact figures, investors often use quick rules of thumb for screening:
The 1% Rule: Monthly rent should be at least 1% of the purchase price. For example, a $200,000 home should rent for $2,000.
The 50% Rule: Estimate that 50% of your gross rent will go toward operating expenses (excluding the mortgage). If the remaining 50% can cover the mortgage with profit left over, it's a good candidate.
Frequently Asked Questions
What is a good cash flow per door?
Most investors aim for at least $100 to $200 per unit per month in pure cash flow after all expenses and reserves. In high-cost markets, cash flow might be lower, but appreciation potential is higher.
Why should I budget for vacancy?
Even in hot markets, tenants move out. Budgeting 5-8% ensures you have savings to cover the mortgage during turnover periods.
Does this calculator include depreciation?
No. Depreciation is a tax benefit that is handled on your tax return and does not affect the monthly cash availability, though it significantly boosts the after-tax return.
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