What is Cash Flow in real estate?

Cash flow is the money left over from your rental income after all expenses, including the mortgage payment, have been paid. Positive cash flow means you are making a profit each month. Negative cash flow means you have to pay out of pocket to cover the costs.

What is Cash-on-Cash Return?

Cash-on-Cash (CoC) Return measures the annual cash flow relative to the total amount of cash you invested upfront (down payment + closing costs). It's a powerful metric because it tells you the return you are getting on your actual invested capital.

The Capitalization Rate (Cap Rate) measures a property's unleveraged rate of return. It is calculated as Net Operating Income (NOI) divided by the property price. It's used to compare the profitability of different properties regardless of their financing, making it a standard metric for comparing deals.

Rental Property Calculator

Currency

Purchase & Loan

Purchase Price

Down Payment (%)

Interest Rate (%)

Loan Term (Years)

Closing Costs (%)

Income

Gross Monthly Rent

Other Monthly Income

Monthly Operating Expenses

Property Taxes (%/yr)

Insurance (%/yr)

HOA Fees

Vacancy (% of rent)

Repairs (% of rent)

Prop. Management (% of rent)

Investment Performance Summary

Monthly Cash Flow

Cash on Cash Return

Cap Rate

Financial Breakdown

Total Cash Needed:
Net Operating Income (NOI):
Monthly P&I Payment:
Total Monthly Expenses:

Don't Hope for a Good Deal—Calculate It.

Successful real estate investing isn't about luck; it's about math. A property that looks great on the surface might be a financial drain once you account for all the hidden costs. The difference between a profitable investment and a money pit comes down to running the numbers accurately and without emotion.

This all-in-one calculator is your analysis powerhouse. It forces you to consider everything: income, financing, and all the operating expenses that eat into your profit. It then distills this complex data into the three most important metrics for any investor: your monthly **Cash Flow**, your **Cash-on-Cash Return** on your invested capital, and the deal's **Cap Rate**. Use this tool to compare properties objectively and build a portfolio that performs.

More Real Estate & Financial Tools

Mortgage Calculator: Get a detailed amortization schedule for your investment property loan.
Depreciation Calculator: Calculate the tax benefits of your rental property by generating a depreciation schedule.
Return on Investment (ROI) Calculator: A general tool to analyze the return on any type of investment.

Frequently Asked Questions (FAQ)

What is Net Operating Income (NOI)?

NOI is your property's total income minus all operating expenses. It's a crucial number because it represents the property's ability to generate profit *before* considering the loan payment. NOI is a measure of the property's performance, while cash flow is a measure of the investment's performance for you.

What is a good Cash-on-Cash (CoC) Return?

Many real estate investors aim for a CoC return of 8-12% or higher, but a "good" return is subjective. It depends on your market, the risk of the property, and your personal financial goals. It's a more personal metric than Cap Rate because it's based on your specific financing.

What is the 1% Rule?

The 1% rule is a quick, back-of-the-napkin screening tool. It states that the gross monthly rent should be at least 1% of the property's purchase price. For example, a $200,000 property should rent for at least $2,000/month. If it does, it's worth analyzing further with a detailed calculator like this one. If it doesn't, it might not cash flow.