Analyze the profitability of your next real estate investment
Monthly Mortgage$0.00
Monthly Cash Flow$0.00
Cash on Cash ROI0.00%
Total Investment$0.00
How to Use the Rental Property Cash Flow Calculator
Investing in real estate requires a cold, hard look at the numbers. This calculator helps you determine if a property will generate positive cash flow or become a "money pit." Here is a breakdown of the key metrics used:
1. Understanding Cash Flow
Cash flow is the amount of profit left over after all operating expenses and mortgage payments have been paid. For a successful rental investment, you generally want a positive cash flow. This provides a buffer for unexpected repairs and vacancies.
2. The Importance of Cash on Cash (CoC) Return
While total profit is nice, CoC Return tells you how hard your actual cash is working for you. It is calculated by dividing your Annual Pre-Tax Cash Flow by your Total Cash Invested (Down payment + closing costs). A "good" CoC return typically ranges from 8% to 12% depending on the market.
Real-World Example
Imagine you buy a property for $250,000 with a 20% down payment ($50,000). If your monthly rent is $2,200 and your total expenses (mortgage, taxes, insurance, maintenance) are $1,800, your monthly cash flow is $400. Your annual cash flow is $4,800, making your Cash on Cash return 9.6% ($4,800 / $50,000).
Pro Tips for Investors
The 1% Rule: Many investors look for properties where the monthly rent is at least 1% of the purchase price.
Cap Rate: Remember that Cap Rate does not include mortgage payments, while Cash Flow does.
Vacancy Factor: Always include a 5-10% vacancy buffer in your monthly expenses to stay realistic.
function calculateRentalROI() {
// Get Input Values
var price = parseFloat(document.getElementById('purchasePrice').value);
var downPct = parseFloat(document.getElementById('downPaymentPct').value);
var rate = parseFloat(document.getElementById('interestRate').value);
var term = parseFloat(document.getElementById('loanTerm').value);
var rent = parseFloat(document.getElementById('monthlyRent').value);
var expenses = parseFloat(document.getElementById('monthlyExpenses').value);
// Basic Validation
if (isNaN(price) || isNaN(downPct) || isNaN(rate) || isNaN(term) || isNaN(rent) || isNaN(expenses)) {
alert("Please enter valid numbers in all fields.");
return;
}
// Mortgage Calculation
var downPaymentAmount = price * (downPct / 100);
var loanAmount = price – downPaymentAmount;
var monthlyRate = (rate / 100) / 12;
var totalPayments = term * 12;
var monthlyMortgage = 0;
if (rate > 0) {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, totalPayments)) / (Math.pow(1 + monthlyRate, totalPayments) – 1);
} else {
monthlyMortgage = loanAmount / totalPayments;
}
// Cash Flow Calculation
var monthlyCashFlow = rent – monthlyMortgage – expenses;
var annualCashFlow = monthlyCashFlow * 12;
// ROI Calculation (Cash on Cash)
// We assume 3% closing costs/upfront repairs as a standard investment estimate for total cash invested
var totalInitialCash = downPaymentAmount + (price * 0.03);
var cashOnCash = (annualCashFlow / totalInitialCash) * 100;
// Update Results
document.getElementById('resMortgage').innerText = '$' + monthlyMortgage.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resCashFlow').innerText = '$' + monthlyCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resROI').innerText = cashOnCash.toFixed(2) + '%';
document.getElementById('resTotalInvestment').innerText = '$' + totalInitialCash.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
// Styling logic for negative cash flow
if (monthlyCashFlow < 0) {
document.getElementById('resCashFlow').style.color = '#e74c3c';
} else {
document.getElementById('resCashFlow').style.color = '#27ae60';
}
// Show Results Area
document.getElementById('results-area').style.display = 'block';
}