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.
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.
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.
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