Rental Property Cash Flow Analysis Calculator
Run rental property cash flow analysis with rent, vacancy, operating expenses, financing, monthly cash flow, cap rate, cash-on-cash return, DSCR, and 10-year projections. Results update instantly as you type.
Name for saving and sharing (not required)
Property Details
= $70,000
= $8,750
Used for 10-year projection only
Financing
Income
Parking, laundry, storage, etc.
Vacancy loss: $120/mo
Operating Expenses
= $300/mo
= $150/mo
= $240/mo
= $200/mo
Projection Settings
Key Metrics
Monthly Cash Flow
-$670
-$8,041 annually
Cap Rate
4.25%
Cash-on-Cash Return
-10.21%
$78,750 invested
DSCR
0.65
Monthly NOI
$1,240
$14,880 annually
Gross Rent Multiplier
12.15x
Break-even Occupancy
122.92%
Expense Ratio
45.61%
Down Payment
$70,000
Total Cash Invested
$78,750
Monthly Profit & Loss
| Income | |
| Gross Rental Income | $2,400 |
| Vacancy Loss (5%) | ($120) |
| Effective Gross Income | $2,280 |
| Operating Expenses | |
| Property Tax | $300 |
| Insurance | $150 |
| Property Management (10%) | $240 |
| Maintenance | $200 |
| CapEx Reserve | $150 |
| Total Operating Expenses | ($1,040) |
| Net Operating Income (NOI) | $1,240 |
| Mortgage (P&I) | ($1,910) |
| Net Monthly Cash Flow | -$670 |
How This Calculator Works
This calculator uses standard real estate investment formulas to analyze rental property performance. Enter your deal details and results update instantly — no page refresh needed.
Formulas Used
Loan Amount = Purchase Price × (1 − Down Payment%)
Monthly Mortgage = L × (r × (1+r)^n) / ((1+r)^n − 1)
NOI = Effective Gross Income − Total Operating Expenses
Cash Flow = NOI − Mortgage Payment
Cap Rate = Annual NOI ÷ Purchase Price × 100
Cash-on-Cash Return = Annual Cash Flow ÷ Total Cash Invested × 100
DSCR = Annual NOI ÷ Annual Debt Service
GRM = Purchase Price ÷ Annual Gross Rent
Worked Example
Using the default inputs: $350,000 purchase price, 20% down, 7.25% rate, 30-year term, $2,400/month rent:
- • Loan Amount: $280,000
- • Monthly Mortgage: ≈$1,910
- • Effective Gross Income: $2,400 × (1 − 5%) = $2,280
- • Total Operating Expenses: ≈$1,090 (tax, insurance, management, maintenance, CapEx)
- • Monthly NOI: $2,280 − $1,090 = $1,190
- • Monthly Cash Flow: $1,190 − $1,910 = −$720
This example illustrates why checking all metrics matters — adjust rent, expenses, or down payment to model different scenarios.
Interpreting Results
Monthly Cash Flow
Positive = property generates income after all expenses and mortgage. Negative = you cover the gap from other income.
Cap Rate
Measures income yield independent of financing. Higher is generally better, but typical ranges vary significantly by location and property type.
Cash-on-Cash Return
Return on your actual cash invested. Unlike cap rate, this reflects financing costs.
DSCR
Above 1.0 means income covers debt. Many lenders require 1.2–1.25 for investment property loans.
Assumptions & Limitations
- • Inputs are example assumptions, not verified market data.
- • The 10-year projection uses simple annual growth rates — actual markets are cyclical.
- • No tax calculations are included (depreciation, mortgage interest deduction, capital gains).
- • Financing is modeled as a conventional amortizing loan. Interest-only loans are not supported.
- • CapEx reserves are an estimate — actual major repair costs vary widely.
- • Appreciation and rent growth are assumptions, not predictions.
Frequently Asked Questions
What is a good cash-on-cash return for rental property?
This varies significantly by market, risk tolerance, and investor goals. Cash-on-cash return depends on financing terms, which cap rate does not. Compare investments with similar risk profiles rather than using a universal threshold.
Why is my cash flow negative?
Negative cash flow means the property costs more per month than it generates. This can occur with high purchase prices, low rents, high expenses, or unfavorable financing. Try adjusting the down payment, renegotiating expenses, or finding a property with higher rent-to-price ratio.
How is management fee calculated?
Management fee is calculated as a percentage of gross monthly rent (before vacancy deduction), which is the standard industry practice.
Does this calculator include taxes?
No — property taxes are included as an expense, but personal income tax, depreciation, and capital gains tax are not modeled. Tax treatment varies significantly by individual circumstances. Consult a tax professional.
What is CapEx reserve?
Capital expenditure (CapEx) reserve is money set aside monthly for major future repairs — roof replacement, HVAC, water heater, appliances. This is a planning reserve, not a guaranteed cost. The appropriate amount depends on the property's age and condition.
Educational Disclaimer
All calculations are estimates for educational and planning purposes only. PropertyFlowTools.com does not provide financial, tax, legal, lending, or investment advice. Verify calculations and consult qualified professionals before making property or financing decisions.
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Last reviewed: 2026