Analyze your potential real estate investment returns instantly.
Purchase Information
Income & Expenses
Operational Assumptions
Monthly Cash Flow:$0.00
Monthly Mortgage (P&I):$0.00
Total Monthly Expenses:$0.00
Net Operating Income (Annual):$0.00
Cap Rate:0.00%
Cash on Cash Return:0.00%
function calculateCashFlow() {
// Get Inputs
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 rehabCosts = parseFloat(document.getElementById('rehabCosts').value) || 0;
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var propertyTax = parseFloat(document.getElementById('propertyTax').value) || 0;
var homeInsurance = parseFloat(document.getElementById('homeInsurance').value) || 0;
var hoaFees = parseFloat(document.getElementById('hoaFees').value) || 0;
var vacancyRate = parseFloat(document.getElementById('vacancyRate').value) || 0;
var maintenanceRate = parseFloat(document.getElementById('maintenanceRate').value) || 0;
var managementFee = parseFloat(document.getElementById('managementFee').value) || 0;
// Calculations – Mortgage
var downPaymentAmount = purchasePrice * (downPaymentPercent / 100);
var loanAmount = purchasePrice – downPaymentAmount;
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
var monthlyMortgage = 0;
if (loanAmount > 0 && monthlyRate > 0) {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else if (loanAmount > 0 && monthlyRate === 0) {
monthlyMortgage = loanAmount / numberOfPayments;
}
// Calculations – Expenses
var monthlyTax = propertyTax / 12;
var monthlyInsurance = homeInsurance / 12;
var monthlyVacancy = monthlyRent * (vacancyRate / 100);
var monthlyMaintenance = monthlyRent * (maintenanceRate / 100);
var monthlyManagement = monthlyRent * (managementFee / 100);
var totalOperatingExpenses = monthlyTax + monthlyInsurance + hoaFees + monthlyVacancy + monthlyMaintenance + monthlyManagement;
var totalExpenses = totalOperatingExpenses + monthlyMortgage;
// Calculations – Returns
var monthlyCashFlow = monthlyRent – totalExpenses;
var annualCashFlow = monthlyCashFlow * 12;
var annualNOI = (monthlyRent * 12) – (totalOperatingExpenses * 12);
var totalInitialInvestment = downPaymentAmount + closingCosts + rehabCosts;
var capRate = 0;
if (purchasePrice > 0) {
capRate = (annualNOI / purchasePrice) * 100;
}
var cashOnCash = 0;
if (totalInitialInvestment > 0) {
cashOnCash = (annualCashFlow / totalInitialInvestment) * 100;
}
// Display Results
document.getElementById('results-area').style.display = 'block';
// Helper formatter
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
document.getElementById('resCashFlow').innerHTML = formatter.format(monthlyCashFlow);
document.getElementById('resMortgage').innerHTML = formatter.format(monthlyMortgage);
document.getElementById('resTotalExp').innerHTML = formatter.format(totalExpenses);
document.getElementById('resNOI').innerHTML = formatter.format(annualNOI);
document.getElementById('resCapRate').innerHTML = capRate.toFixed(2) + "%";
document.getElementById('resCoC').innerHTML = cashOnCash.toFixed(2) + "%";
// Color coding cash flow
if(monthlyCashFlow >= 0) {
document.getElementById('resCashFlow').style.color = '#27ae60';
} else {
document.getElementById('resCashFlow').style.color = '#c0392b';
}
}
Understanding Rental Property Cash Flow
Calculating cash flow is the single most important step in analyzing a potential real estate investment. Cash flow represents the net amount of money moving into or out of your rental property business each month. Positive cash flow means your income exceeds your expenses, providing you with passive income, while negative cash flow implies the property is costing you money to hold.
This Rental Property Cash Flow Calculator is designed to help investors make data-driven decisions by accounting for all variable and fixed expenses associated with owning a rental property.
How to Calculate Rental Cash Flow
The basic formula for rental property cash flow is straightforward:
Cash Flow = Total Monthly Income – Total Monthly Expenses
However, the accuracy of your calculation depends on ensuring "Total Monthly Expenses" includes hidden costs like vacancy and maintenance reserves, not just the mortgage and taxes.
Input Definitions
Purchase Price: The negotiated price of the property.
Down Payment: The upfront cash paid towards the purchase price (usually 20-25% for investment properties).
Vacancy Rate: An estimated percentage of time the property will sit empty between tenants. A safe estimate is usually 5-8%.
Maintenance/Repairs: Funds set aside for future repairs (e.g., roof, HVAC, painting). 5-10% of rent is a standard conservative estimate.
Cap Rate (Capitalization Rate): A metric used to evaluate the profitability of an investment independent of financing. It is calculated as Net Operating Income (NOI) divided by the property asset value.
Cash on Cash Return: This measures the annual return on the actual cash you invested (Down Payment + Closing Costs + Rehab). It gives a better picture of the performance of your specific capital than Cap Rate does.
Why is Net Operating Income (NOI) Important?
NOI is the annual income generated by the property after deducting all operating expenses but before deducting mortgage payments. This figure is crucial because it allows investors to compare the profitability of properties regardless of how they are financed. Lenders also use NOI to determine if a property generates enough income to cover the debt service.
Interpreting Your Results
If your Cash on Cash Return is between 8% and 12%, most investors consider this a solid investment. Returns above 15% are considered excellent but may come with higher risks or require significant rehabilitation work.
Remember, this calculator provides an estimate based on your inputs. Always verify tax rates, insurance premiums, and rental comparables in your specific market before making an offer.