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Rental Property Cash Flow Calculator

Enter a deal and see the full picture: monthly cash flow, cap rate, cash-on-cash return, quick-screen heuristics, and a multi-year projection with an IRR-style total return at the end of your hold.

Your deal

Acquisition

$
$
$
%

About $81,250 down

Loan

%

Illustrative example rate. Not an available or quoted rate.

yrs

Income

$
$

Laundry, parking, storage, pet rent

Operating expenses

$
$
$
%

Of gross rent

%

Of gross rent

%

Of gross rent

%

Roof, HVAC, big-ticket reserves

$

Owner-paid only

$

Projection assumptions

%

Annual

%

Annual

%

Annual

yrs
%

Agent commissions and closing fees

Monthly cash flow

Monthly cash flow (year 1)-$144
Gross monthly income$2,600
Operating expenses$1,040
Net operating income$1,560
Debt service (P&I)$1,704

Returns (year 1)

Cap rate5.54%
Cash-on-cash return-1.83%
Annual NOI$18,724
Annual cash flow-$1,728
Total cash invested$94,250

Quick-screen heuristics

1% Rule
Rent is 0.80% of purchase price (target: 1.00%).
Fail
50% Rule
Operating expenses are 40.0% of gross rent (expected: ~50%).
Check
Gross Rent Multiplier10.4

Total return over 10 years

Sale proceeds (net of costs)$199,004
Total profit$116,264
Annualized return (IRR)8.32%
Results are estimates based on user inputs and do not represent loan terms, APR, or a financing offer. Pre-filled values are illustrative examples, not available or quoted rates. Actual terms depend on credit, property, program, and underwriting.

Multi-year projection

Rent and expenses grow with your assumptions. Equity reflects both principal paydown and appreciation. Cumulative return is total cash flow plus current equity, minus your initial cash invested.

YearNOICash flowHome valueLoan balanceEquity from paydownEquity from appreciationTotal equityCumulative return
1$18,724-$1,728$334,750$241,503$2,247$9,750$93,247-$2,731
2$19,312-$1,140$344,793$239,082$4,668$19,793$105,711$8,593
3$19,919-$533$355,136$236,472$7,278$30,136$118,664$21,013
4$20,544$92$365,790$233,660$10,090$40,790$132,130$34,571
5$21,189$737$376,764$230,630$13,120$51,764$146,134$49,312
6$21,854$1,402$388,067$227,364$16,386$63,067$160,703$65,282
7$22,540$2,088$399,709$223,845$19,905$74,709$175,864$82,531
8$23,246$2,794$411,700$220,053$23,697$86,700$191,647$101,109
9$23,975$3,523$424,051$215,967$27,783$99,051$208,085$121,070
10$24,727$4,275$436,773$211,563$32,187$111,773$225,210$142,470

Ready to pressure-test this deal?

Investment property financing has more moving parts than a primary home loan. Walk through your numbers with a loan officer and get a clear read on rate, reserves, and how the file will underwrite.

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Frequently asked questions

When should I use a cash flow calculator?
Use this tool when you have a specific property in mind and want to model its performance over a 5-10 year hold. It accounts for appreciation, rent growth, and the eventual sale proceeds.
What is a good cap rate on a rental property?
It depends on the market. In higher-growth metros a 5 to 6 percent cap rate can be normal. In cash-flow markets investors often target 7 to 10 percent or more. Compare your result to recent sold comps in the same submarket, not a national average.
What is the 1% Rule?
Gross monthly rent should be at least 1 percent of the purchase price. It is a quick screening filter, not an underwriting standard. Many great deals fail the 1% Rule in appreciating markets.
What is the 50% Rule?
Operating expenses (everything except debt service) tend to run about 50 percent of gross rent over time. If your pro forma shows expenses well under that, sanity-check for missing vacancy, maintenance, or capex reserves.
How is cash-on-cash return different from cap rate?
Cap rate uses net operating income and ignores financing. Cash-on-cash uses pre-tax cash flow (after debt service) divided by the actual cash you put in. Cap rate measures the property, cash-on-cash measures your deal.
Does this include tax depreciation or cost segregation?
No. This calculator focuses on pre-tax cash flow and returns. Depreciation, bonus depreciation, and cost segregation can meaningfully change after-tax outcomes. Talk to a CPA before counting those benefits in the deal.

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