Rental Property Cash Flow Calculator
:root {
–primary-color: #2c3e50;
–secondary-color: #27ae60;
–accent-color: #3498db;
–light-bg: #f8f9fa;
–border-color: #e9ecef;
–text-color: #333;
}
body {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
line-height: 1.6;
color: var(–text-color);
max-width: 1200px;
margin: 0 auto;
padding: 20px;
}
.calculator-container {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 40px;
background: #fff;
padding: 30px;
border-radius: 12px;
box-shadow: 0 5px 20px rgba(0,0,0,0.08);
margin-bottom: 50px;
}
.input-section {
background: var(–light-bg);
padding: 25px;
border-radius: 8px;
}
.results-section {
background: var(–primary-color);
color: #fff;
padding: 25px;
border-radius: 8px;
display: flex;
flex-direction: column;
justify-content: center;
}
h2 {
margin-top: 0;
color: var(–primary-color);
border-bottom: 2px solid var(–secondary-color);
padding-bottom: 10px;
margin-bottom: 25px;
}
.results-section h2 {
color: #fff;
border-bottom-color: rgba(255,255,255,0.2);
}
.form-group {
margin-bottom: 15px;
}
.form-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
font-size: 0.9rem;
}
.form-group input {
width: 100%;
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 1rem;
box-sizing: border-box;
}
.form-group input:focus {
border-color: var(–accent-color);
outline: none;
box-shadow: 0 0 0 2px rgba(52, 152, 219, 0.2);
}
.btn-calculate {
background: var(–secondary-color);
color: white;
border: none;
padding: 15px 30px;
font-size: 1.1rem;
font-weight: bold;
border-radius: 5px;
cursor: pointer;
width: 100%;
margin-top: 10px;
transition: background 0.3s;
}
.btn-calculate:hover {
background: #219150;
}
.result-card {
background: rgba(255,255,255,0.1);
padding: 15px;
border-radius: 6px;
margin-bottom: 15px;
display: flex;
justify-content: space-between;
align-items: center;
}
.result-card.main-result {
background: var(–secondary-color);
transform: scale(1.02);
box-shadow: 0 4px 10px rgba(0,0,0,0.2);
}
.result-label {
font-size: 0.95rem;
opacity: 0.9;
}
.result-value {
font-size: 1.4rem;
font-weight: 700;
}
.main-result .result-value {
font-size: 1.8rem;
}
.content-article {
max-width: 800px;
margin: 0 auto;
}
.content-article h2 {
color: var(–primary-color);
margin-top: 40px;
}
.content-article p {
margin-bottom: 20px;
color: #555;
}
.content-article ul {
margin-bottom: 20px;
padding-left: 20px;
}
.content-article li {
margin-bottom: 10px;
}
.grid-2 {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 15px;
}
@media (max-width: 768px) {
.calculator-container {
grid-template-columns: 1fr;
}
.grid-2 {
grid-template-columns: 1fr;
}
}
{
"@context": "https://schema.org",
"@type": "FAQPage",
"mainEntity": [{
"@type": "Question",
"name": "What is a good cash on cash return for rental property?",
"acceptedAnswer": {
"@type": "Answer",
"text": "A 'good' Cash on Cash (CoC) return typically falls between 8% and 12%. However, this varies by market. Some investors in high-appreciation areas accept lower yields (4-6%), while those in stable, low-appreciation markets often seek 10% or higher."
}
}, {
"@type": "Question",
"name": "How is Net Operating Income (NOI) calculated?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Net Operating Income (NOI) is calculated by subtracting all operating expenses from the total income generated by the property. Operating expenses include maintenance, taxes, insurance, and management fees, but exclude mortgage payments and capital expenditures."
}
}, {
"@type": "Question",
"name": "Does the 50% rule work for rental properties?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The 50% rule is a quick rule of thumb stating that 50% of your rental income will go towards operating expenses (excluding the mortgage). While useful for quick screening, a detailed calculator is necessary for accurate analysis."
}
}]
}
Investment Analysis
Monthly Cash Flow
$0.00
Cash on Cash Return
0.00%
Cap Rate
0.00%
Net Operating Income (Annual)
$0.00
Total Cash Needed
$0.00
Monthly Expenses
$0.00
Mortgage Payment
$0.00
Understanding Your Rental Property Analysis
Investing in real estate requires more than just finding a tenant; it requires a deep understanding of the numbers. This Rental Property Cash Flow Calculator helps investors determine if a property is a viable asset by breaking down income, expenses, and key return metrics.
Key Metrics Explained
1. Monthly Cash Flow
This is your profit after all expenses and mortgage payments are made. Positive cash flow is essential for long-term sustainability. It ensures you have funds for repairs and vacancies without dipping into personal savings.
Formula: Total Income – Total Expenses – Debt Service
2. Cash on Cash Return (CoC)
This metric measures the annual return on the actual cash you invested (down payment + closing costs + rehab costs). It is one of the most important metrics because it allows you to compare real estate returns against other investments like stocks or bonds.
Formula: (Annual Cash Flow / Total Cash Invested) × 100
3. Cap Rate (Capitalization Rate)
Cap Rate measures the natural rate of return of the property assuming you bought it in cash. It is useful for comparing the profitability of similar properties in the same market, regardless of how they are financed.
Formula: (Net Operating Income / Purchase Price) × 100
4. Net Operating Income (NOI)
NOI is the total income the property generates minus all necessary operating expenses. Note that NOI does not include mortgage payments (debt service). It represents the profitability of the asset itself.
Common Expenses to Consider
- Vacancy Rate: Always budget for times the unit is empty. 5-8% is standard in many urban markets.
- Maintenance & CapEx: Roofs leak and water heaters break. Setting aside 10-15% of rent is a prudent safety net.
- Management Fees: Even if you self-manage, account for your time. Professional managers typically charge 8-10% of monthly rent.
How to Interpret the Results
If your Cash Flow is negative, the property is a liability unless appreciation is significant. A CoC Return of 8-12% is generally considered good for residential rentals, though this varies heavily by location. A high Cap Rate (e.g., >8%) usually implies higher risk or a lower-income area, while a low Cap Rate (<4%) suggests a stable, high-demand area with lower immediate returns.
function calculateRental() {
// 1. Get Input Values
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value) || 0;
var downPaymentPercent = parseFloat(document.getElementById('downPayment').value) || 0;
var interestRate = parseFloat(document.getElementById('interestRate').value) || 0;
var loanTerm = parseFloat(document.getElementById('loanTerm').value) || 0;
var closingCosts = parseFloat(document.getElementById('closingCosts').value) || 0;
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var propertyTax = parseFloat(document.getElementById('propertyTax').value) || 0;
var insurance = parseFloat(document.getElementById('insurance').value) || 0;
var hoa = parseFloat(document.getElementById('hoa').value) || 0;
var maintenanceRate = parseFloat(document.getElementById('maintenance').value) || 0;
var vacancyRate = parseFloat(document.getElementById('vacancy').value) || 0;
var managementRate = parseFloat(document.getElementById('management').value) || 0;
// 2. Calculate Mortgage (Principal + Interest)
var downPaymentAmount = purchasePrice * (downPaymentPercent / 100);
var loanAmount = purchasePrice – downPaymentAmount;
var monthlyInterestRate = (interestRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
var mortgagePayment = 0;
if (loanAmount > 0 && interestRate > 0 && loanTerm > 0) {
mortgagePayment = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else if (loanAmount > 0 && interestRate === 0) {
mortgagePayment = loanAmount / numberOfPayments;
}
// 3. Calculate Operating Expenses
// Convert percentages to monthly dollar amounts
var monthlyMaintenance = monthlyRent * (maintenanceRate / 100);
var monthlyVacancy = monthlyRent * (vacancyRate / 100);
var monthlyManagement = monthlyRent * (managementRate / 100);
// Monthly breakdown of annual costs
var monthlyTax = propertyTax / 12;
var monthlyInsurance = insurance / 12;
var totalOperatingExpenses = monthlyTax + monthlyInsurance + hoa + monthlyMaintenance + monthlyVacancy + monthlyManagement;
// 4. Calculate NOI (Net Operating Income)
// NOI = Income – Operating Expenses (Not including mortgage)
var monthlyNOI = monthlyRent – totalOperatingExpenses;
var annualNOI = monthlyNOI * 12;
// 5. Calculate Cash Flow
var monthlyCashFlow = monthlyNOI – mortgagePayment;
var annualCashFlow = monthlyCashFlow * 12;
// 6. Calculate Returns
var totalCashInvested = downPaymentAmount + closingCosts;
var cocReturn = 0;
if (totalCashInvested > 0) {
cocReturn = (annualCashFlow / totalCashInvested) * 100;
}
var capRate = 0;
if (purchasePrice > 0) {
capRate = (annualNOI / purchasePrice) * 100;
}
// 7. Update DOM Elements
// Helper function for currency formatting
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
document.getElementById('monthlyCashFlow').innerHTML = formatter.format(monthlyCashFlow);
// Color code cash flow
if (monthlyCashFlow >= 0) {
document.getElementById('monthlyCashFlow').style.color = '#fff'; // keep white in results box
} else {
document.getElementById('monthlyCashFlow').style.color = '#ff9999'; // light red for negative
}
document.getElementById('cocReturn').innerHTML = cocReturn.toFixed(2) + "%";
document.getElementById('capRate').innerHTML = capRate.toFixed(2) + "%";
document.getElementById('annualNOI').innerHTML = formatter.format(annualNOI);
document.getElementById('totalCashNeeded').innerHTML = formatter.format(totalCashInvested);
document.getElementById('totalMonthlyExpenses').innerHTML = formatter.format(totalOperatingExpenses + mortgagePayment);
document.getElementById('mortgagePayment').innerHTML = formatter.format(mortgagePayment);
}
// Initialize calculator on load
window.onload = function() {
calculateRental();
};