Rental Property Cash Flow Calculator
Purchase Information
Rental Income
Annual Operating Expenses
How to Use This Calculator
This calculator helps you analyze the cash flow of a rental property investment. Enter the purchase details, expected rental income, and operating expenses to see if the property will generate positive or negative cash flow.
Key Metrics Explained:
- Cash Flow: Monthly/annual income after all expenses and mortgage payments
- Cap Rate: Return on investment based on property value (NOI ÷ Purchase Price)
- Cash-on-Cash Return: Return on actual cash invested (Annual Cash Flow ÷ Total Cash Invested)
- NOI: Net Operating Income - rental income minus operating expenses (before mortgage)
About This Calculator
Use the rental property cash flow calculator when you want faster calculations with a clear method behind every result.
Inside real estate investment, this tool gives you a practical way to model scenarios, compare outcomes, and make better next-step decisions without spreadsheet overhead.
If your workflow expands, pair this calculator with Cap Rate Calculator and Cash-on-Cash Return Calculator to cross-check assumptions and build a stronger analysis chain.
Formula
Monthly mortgage = Loan amount × [r(1+r)^n] / [(1+r)^n - 1] | Gross rental income = Monthly rent × 12 | Vacancy loss = Gross rental income × vacancy rate | Operating expenses = Property tax + Insurance + Maintenance + Management fees + HOA + Utilities | NOI = (Gross rental income - Vacancy loss) - Operating expenses | Cash flow = NOI - (Monthly mortgage × 12) | Cap rate = NOI / Purchase price | Cash-on-cash return = Annual cash flow / Total cash invested
Example Calculation
The worked example below demonstrates how the input fields translate into the final output. Use it as a quick validation pass before entering your own numbers.
- Purchase price: 6
- Down payment %: 8
- Interest rate: 12
- Loan term: 3.5
Explanation of Results
Result Interpretation
The rental property cash flow calculator returned calculated value based on Purchase price 6, Down payment % 8, Interest rate 12, and Loan term 3.5. Use this result as a baseline, then adjust one input at a time to understand how sensitive your outcome is before making decisions.
FAQ
How should I validate the rental property cash flow calculator result?
Run a second scenario with rounded numbers, then compare the direction and magnitude of the change before using the value operationally.
What formula is this based on?
This page uses the following formula logic: Monthly mortgage = Loan amount × [r(1+r)^n] / [(1+r)^n - 1] | Gross rental income = Monthly rent × 12 | Vacancy loss = Gross rental income × vacancy rate | Operating expenses = Property tax + Insurance + Maintenance + Management fees + HOA + Utilities | NOI = (Gross rental income - Vacancy loss) - Operating expenses | Cash flow = NOI - (Monthly mortgage × 12) | Cap rate = NOI / Purchase price | Cash-on-cash return = Annual cash flow / Total cash invested
Can I bookmark this real estate investment tool?
Yes. Use the canonical URL /finance-economics/real-estate-investment/rental-property-cash-flow-calculator to return to this calculator in the Finance & Economics library.
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See Also
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