Real Estate Rental Cash Flow Calculator - Investment ROI & Cap Rate Analysis
Real Estate Rental Cash Flow Calculator
Property Acquisition
($)
(%)
years
Yes
No
($)
($)
Operating Expenses
($) (%)
($) (%)
($) (%)
($) (%)
($) (%)
Rental Income
($) (%)
($) (%)
(%)
(% of Collected Rent)
Property Sale
years
(% of Sale Price)
Investment Performance Summary
| Internal Rate of Return (IRR): | |
| Net Profit at Sale: | |
| Cash-on-Cash Return (%): | |
| Capitalization Rate at Purchase (Cap Rate): | |
| Total Gross Rental Income: | |
| Total Debt Service: | |
| Total Operating Expenses: | |
| Total Net Operating Income (NOI): |
Monthly and Annual Operating Statement
| Category | Monthly Amount ($) | Annual Amount ($) |
|---|---|---|
| Gross Rental Income | ||
| Debt Service (Mortgage Payment) | ||
| Vacancy Loss | ||
| Property Management Fee | ||
| Property Taxes | ||
| Insurance Premiums | ||
| HOA Fees | ||
| Maintenance & Repairs | ||
| Other Operating Expenses | ||
| Net Cash Flow | ||
| Net Operating Income (NOI) |
Year-by-Year Investment Performance
| Year | Gross Annual Income | Annual Mortgage Payments | Total Operating Expenses | Annual Cash Flow | Cash on Cash Return | Equity Gained | Disposition (Year-End Sale) | |
|---|---|---|---|---|---|---|---|---|
| Net Sale Proceeds | Return (IRR) (%) | |||||||
What Are the Core Financial Formulas Used in Real Estate Investment Analysis?
Net Operating Income (NOI)
NOI = Gross Rental Income - Operating ExpensesOperating expenses include property taxes, insurance, maintenance, property management fees, HOA fees, and other costs but exclude mortgage payments and depreciation.
Capitalization Rate (Cap Rate)
Cap Rate = (NOI ÷ Purchase Price) × 100%Cap rates help compare properties and assess market valuations. Higher cap rates generally indicate higher returns but may also suggest higher risk.
Cash-on-Cash Return
Cash-on-Cash Return = (Annual Pre-Tax Cash Flow ÷ Initial Cash Investment) × 100%This measures the annual return on the actual cash invested, providing insight into cash flow efficiency.
Internal Rate of Return (IRR)
The IRR is the discount rate that makes the net present value (NPV) of all cash flows equal to zero. Our calculator uses the Newton-Raphson iterative method for precise IRR calculations, accounting for:
- Initial investment (negative cash flow)
- Annual operating cash flows
- Final sale proceeds (including remaining equity)
- Time value of money
References
U.S. Government Sources
- U.S. Department of Housing and Urban Development (HUD): hud.gov - Housing market data, fair housing information, and regulatory guidance
- Internal Revenue Service (IRS) - Rental Property Tax Guide: IRS Rental Property Guidelines - Comprehensive tax implications of rental property ownership
- Federal Housing Finance Agency (FHFA): fhfa.gov - Housing price index and market data
- U.S. Census Bureau Housing Data: census.gov/topics/housing.html - Housing statistics and demographic data
- Bureau of Labor Statistics - Consumer Price Index: bls.gov/cpi - Inflation data for expense projections
- Federal Reserve Economic Data (FRED): fred.stlouisfed.org - Economic indicators affecting real estate markets
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