Rental Property Cash Flow Calculator

Analyze rental property investments with Net Operating Income (NOI), cap rate, monthly cash flow, and cash-on-cash return calculations.

Property & Income Inputs

Enter property details and rental income to calculate cash flow metrics.

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Operating Expenses

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Cash Flow Analysis Results

Net Operating Income (NOI)

$0

Annual income minus operating expenses

Cap Rate

0.00%

NOI / Purchase Price

Monthly Cash Flow

$0

NOI minus monthly mortgage

Cash-on-Cash Return

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Annual cash flow / Down payment

How Rental Property Cash Flow Calculator Works

Calculate rental property cash flow, NOI, cap rate, and cash-on-cash return. Free landlord investment analysis tool.

Core Use Case Scenario

Financial planners and prospective homebuyers compare the 30-year wealth impact of renting versus purchasing, factoring appreciation, investment returns, and transaction costs.

Troubleshooting & Edge-Case Failure Points

  • Appreciation is unrealized — compare against realistic returns.
  • Include closing costs (~2-5%) and selling commissions (~6%).
  • Tax deductibility varies by jurisdiction.
  • Moving costs can shift crossover timing by years.

Step-by-Step Instructions

  1. Set home price, down payment, mortgage rate, and loan term.
  2. Input property tax, maintenance, HOA, and appreciation.
  3. Enter monthly rent, rent inflation, and investment return.
  4. Calculate to see net worth trajectories and crossover year.

How to Use the Rental Cash Flow Calculator

  1. Enter purchase price, down payment, and loan terms — the financing side.
  2. Enter rent, vacancy, and operating expenses — the income side.
  3. Read monthly cash flow, cash-on-cash return, and NOI — what the property pays you versus what your capital earns elsewhere.

How the Math Works

Cash flow = NOI − debt service
NOI = Rent × (1 − vacancy%) − operating expenses
Cash-on-cash = Annual cash flow ÷ Cash invested

Worked example: $250,000 property, 25% down ($62,500 + $5,000 closing = $67,500 invested). Loan: $187,500 at 7.0%/30yr = $1,248/month debt service. Rent $1,900 with 6% vacancy ($114) and $500/month operating costs → NOI ≈ $1,286/month. Cash flow = 1,286 − 1,248 = +$38/month — break-even. Cash-on-cash = $456 ÷ $67,500 = 0.7%. At 2026 rates, this is the honest math most gurus skip: positive cash flow at 25% down is rare; the same deal at 40% down ($112,500 invested, $1,065 payment) cash-flows +$221/month = 2.4% cash-on-cash plus amortization plus appreciation. Total return = cash flow + principal paydown (~$9,600/yr early on here) + appreciation; see our rental yield calculator for the unleveraged view.

Cash Flow FAQ

What is a good cash-on-cash return?

Benchmark against alternatives: risk-free treasuries set the floor. Many experienced investors want 6-8%+ cash-on-cash plus appreciation; at 2026 interest rates, 3-5% with strong appreciation markets is common and defensible.

Why is my cash flow negative at 20% down?

Because 7% mortgage rates exceed the cap rates of most residential property. Fixes: bigger down payment, buy below market, increase rent responsibly, or accept negative cash flow as the price of appreciation bets — knowingly.

What is the 50% rule?

A planning shortcut: expect operating expenses (including vacancy and taxes) to consume ~50% of gross rent. If rent is $1,900, expect ~$950 for everything except the mortgage. Reality varies 35-60%.

Does appreciation count in cash flow?

No - cash flow is what hits your bank account monthly. Appreciation and principal paydown are separate return components; the IRR guide on this site combines all three.