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Investment Property Cash Flow Calculator
Cash flow is only part of the story. See monthly income, cap rate, equity built through appreciation, and your total annualized return over any hold period.
Educational calculators — always consult a licensed professional before making financial decisions.
The full acquisition price.
Your initial cash investment (typically 20–25% for investment properties).
Investment property rates are typically 0.5–0.75% above primary home rates.
Conservative estimate — check local comps.
US average ~3.5%. Use your local market trend.
Longer hold periods typically improve returns.
Total Return
+$183,759
Over 10 years — cash flow + equity at sale
Where Your Money Goes
Return Breakdown
Estimates only. Assumes 8% vacancy and 30-year mortgage. Does not include selling costs, income tax, or CapEx reserves. Consult a real estate investment professional.
Your Saved Scenarios
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What you'll need
- ·Purchase price and down payment
- ·Expected mortgage interest rate
- ·Monthly rental income
- ·Annual property tax and insurance
- ·Expected annual appreciation rate
- ·Planned hold period (years)
What you'll get
- ✓Monthly net cash flow — Rent minus all expenses
- ✓Cap rate — NOI / purchase price
- ✓Equity at sale — Appreciation minus remaining balance
- ✓Annualized return (CAGR) — Total return on your down payment
How it works
Enter property details
Input purchase price, down payment, expected rent, and property type.
Add operating expenses
Include taxes, insurance, HOA, maintenance, vacancy, and property management.
Get cash flow metrics
Receive monthly cash flow, cap rate, cash-on-cash return, and GRM.
Rental Property Returns: $350,000 Purchase
| Scenario | Monthly Rent | Cash Flow | Cash-on-Cash |
|---|---|---|---|
| Low rent market | $1,800 | −$320/mo | −4.4% |
| Average market | $2,200 | +$180/mo | +2.6% |
| Strong market | $2,600 | +$580/mo | +8.3% |
| High-demand area | $3,000 | +$980/mo | +14.0% |
Assumes 25% down, 7% rate, 10% vacancy, 10% management, 1% maintenance.
State guides
How this varies by state
Property taxes, insurance costs, first-time buyer programs, and closing costs differ significantly across states. See local data for your state.
California
Texas
Florida
New York
Illinois
Pennsylvania
Ohio
Georgia
North Carolina
Michigan
New Jersey
Virginia
Washington
Arizona
Colorado
Tennessee
Frequently asked questions
What is a good cash-on-cash return for an investment property?+
Most investors target 8–12% cash-on-cash return for residential investment properties. Markets with strong appreciation (coastal cities) often accept lower cash flow (4–6%) in exchange for equity gains. In cash-flow-focused markets (Midwest, Southeast), 10%+ is achievable. Always evaluate total return — cash flow + equity — not cash flow alone.
How is annualized return calculated for an investment property?+
Annualized return uses compound annual growth rate (CAGR): ((1 + totalReturn / downPayment) ^ (1/yearsHeld) - 1) × 100. It combines all cash flows received during the hold period plus your equity at sale (appreciation minus remaining mortgage) relative to your initial cash invested (down payment).
What is cap rate and how do I use it?+
Cap rate (capitalization rate) = Net Operating Income / Purchase Price. NOI excludes mortgage payments but includes all operating expenses (taxes, insurance, maintenance, vacancy, management). Cap rate lets you compare properties regardless of financing. A cap rate above your mortgage rate means positive leverage — your return on equity exceeds your cost of debt.
Should I include property management in my cash flow analysis?+
Yes — even if you self-manage now, model 8–10% property management to stress-test the deal. Most investors eventually hire managers as their portfolio grows, or when they move away from the property. A deal that only works if you self-manage is riskier than it appears.
Ready to analyze your investment property?
Back to the calculator ↑Investment Property Cash Flow Calculator is built and maintained by the RealCostIQ editorial team. Cost ranges and rates are checked against published industry data and contractor quotes, and revised when the underlying figures move. Read our data methodology or more about who builds this. Every calculation runs in your browser — no account, and none of your inputs are stored.
Cost ranges and rates here are checked against contractor quotes and published industry data. If a number still looks off, email Support@RealCostIQ.com and we'll review and fix it.