Rental Property Cash Flow Calculator
Purchase & Loan Details
30 Years
15 Years
10 Years
Income & Expenses
Monthly Analysis
Gross Monthly Income:
$0.00
Monthly Expenses (Taxes, Ins, HOA, Maint):
$0.00
Net Operating Income (NOI):
$0.00
Mortgage Payment (P&I):
$0.00
Monthly Cash Flow:
$0.00
Investment Returns
Cash on Cash Return (ROI):
0.00%
Cap Rate:
0.00%
Total Cash Needed to Close:
$0.00
Understanding Rental Property Cash Flow
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 profit. To ensure a sound investment, you must calculate the Cash Flow. This Rental Property Calculator helps investors evaluate potential deals by breaking down income, operating expenses, and debt service.
What is Cash Flow?
Cash flow is the net amount of money moving into and out of a business or investment. In real estate, positive cash flow means your rental income exceeds all expenses (mortgage, taxes, insurance, maintenance). Negative cash flow means the property costs you money to hold every month.
Key Metrics Explained
- NOI (Net Operating Income): This is your total income minus operating expenses, excluding the mortgage payment. It measures the profitability of the property itself, regardless of financing.
- Cash on Cash Return (CoC ROI): This is perhaps the most important metric for investors. It measures the annual cash income earned on the cash invested. Calculated as:
(Annual Cash Flow / Total Cash Invested) × 100. - Cap Rate (Capitalization Rate): This indicates the rate of return expected on a real estate investment property to generate income. Calculated as:
(NOI / Current Market Value) × 100.
How to Estimate Expenses
Many new investors underestimate expenses. Use the "50% Rule" as a rough quick check (50% of rent often goes to expenses excluding mortgage), but for this calculator, be specific:
- Vacancy Rate: Always budget for vacancy. 5% assumes the property is empty for about 18 days a year.
- Maintenance: Properties degrade. Set aside 5-10% of rent for repairs (roof, HVAC, plumbing).
- Management Fees: If you hire a property manager, they typically charge 8-10% of the monthly rent.
What is a Good ROI?
A "good" Cash on Cash return varies by market and strategy. Generally, a return of 8-12% is considered solid for long-term rentals. However, in high-appreciation markets, investors might accept lower cash flow (4-6%) in exchange for future equity growth.