Calculator Inputs
Example Data Table
| Example Input | Sample Value |
|---|---|
| Purchase Price | $250,000.00 |
| Down Payment | 25% |
| Monthly Rent | $2,400.00 |
| Vacancy Rate | 6% |
| Management Fee | 8% |
| Maintenance Reserve | 7% |
| Annual Taxes | $3,600.00 |
| Annual Insurance | $1,500.00 |
Formula Used
Loan Amount = Purchase Price − Down Payment
Monthly Mortgage Payment = P × [r(1+r)n] ÷ [(1+r)n−1]
Gross Monthly Income = Monthly Rent + Other Monthly Income
Effective Income = Gross Income × (1 − Vacancy Rate)
Operating Expenses = Variable Expenses + Fixed Expenses
NOI = Effective Income − Operating Expenses
Monthly Cash Flow = Monthly NOI − Monthly 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
Break-Even Occupancy = (Operating Expenses + Debt Service) ÷ Gross Scheduled Income × 100
How to Use This Calculator
- Enter the purchase price, financing terms, and cash investment details.
- Fill in monthly rental income and any other income sources.
- Add vacancy, management, maintenance, and capital reserve percentages.
- Enter fixed costs such as taxes, insurance, HOA, and utilities.
- Set growth assumptions for rent, expenses, appreciation, and selling costs.
- Press the calculate button to view results above the form.
- Review monthly cash flow, annual NOI, cap rate, DSCR, and long-range projections.
- Download the CSV or PDF report for sharing or recordkeeping.
FAQs
1. What does cash flow mean for rental property?
Cash flow is the money left after collecting rent, subtracting vacancy, operating expenses, and mortgage payments. Positive cash flow means the property generates surplus income each month.
2. Why is vacancy included in the calculation?
Vacancy accounts for lost income between tenants or from nonpayment. Ignoring it can make a property look more profitable than it realistically is.
3. What is NOI?
NOI stands for net operating income. It measures property income after operating expenses, but before loan payments, income taxes, and depreciation.
4. What is cash on cash return?
Cash on cash return compares annual pre-tax cash flow to the actual cash invested. It helps investors evaluate how efficiently their upfront capital is working.
5. What is a good DSCR?
A DSCR above 1.00 means income covers debt service. Many lenders prefer 1.20 or higher because it provides a stronger cushion against income fluctuations.
6. Should maintenance and CapEx be separate?
Yes. Maintenance covers regular repairs, while CapEx reserves fund larger future replacements like roofs, HVAC systems, or major appliances.
7. Why project multiple years?
Multi-year projections reveal how rent growth, appreciation, debt paydown, and rising expenses affect long-term profitability and equity creation.
8. Can this calculator be used for any rental type?
Yes, but results are only as good as the inputs. It works for many rental properties if you enter realistic income, vacancy, and expense assumptions.