Rental Property Calculator
Project rental cash flow, financing costs and sale proceeds. Compare operating income with cash left after debt payments and capital spending.
Your projection
All returns are before income tax and are based on your assumptions. Monthly cash flow is a year-one average; it is not a guaranteed payment.
Cash-flow schedule
| Period | Collected income | Operating expenses | NOI | Debt payments | Capital budget | Operating cash flow | Loan balance |
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How to read your rental-property results
Collected income is rent plus other income after the vacancy allowance. Operating expenses include your tax, insurance, other operating costs and management fee. Net operating income (NOI) is collected income minus operating expenses, before debt payments and the capital replacement budget.
Cap rate versus cash-on-cash return
The year-one cap rate divides NOI by purchase price. Cash-on-cash return divides year-one cash flow after debt payments and capital budgeting by the initial cash investment. These measure different things; neither includes sale proceeds.
IRR, DSCR and break-even occupancy
Annualized IRR uses the initial cash investment, every modeled monthly operating cash flow and the final net sale proceeds. DSCR divides year-one NOI by year-one debt service; it is shown as “No debt” for an all-cash purchase. Break-even occupancy estimates the occupied share needed for collected income, after management fees, to cover operating expenses, debt payments and the capital budget.
Initial cash and the sale projection
Initial cash is down payment, purchase closing costs and initial repairs. An all-cash purchase uses the full price instead of a down payment. Net sale proceeds subtract selling costs and the remaining loan balance. A negative result means more cash is needed at sale.
Total projected profit equals cumulative operating cash flow plus net sale proceeds minus initial cash. Holding-period ROI divides that profit by initial cash. It is not an annualized return or IRR, and does not reflect the timing of later cash contributions.
How are expenses and capital replacements treated?
The capital budget is deducted as a cash outflow every month, separately from operating expenses and NOI. It represents spending or a fully consumed reserve. No unused reserve is returned at sale. Include routine maintenance only once in operating costs.
How is growth applied?
Rent and other income increase by the income-growth assumption each year. Tax, insurance, other operating costs and the capital budget increase by the expense-growth assumption. Vacancy and management percentages stay constant.
What does the sale value assume?
Unless you enter a sale price, the purchase price grows at the appreciation rate for the whole holding period. Improvements are a cash cost and do not separately raise the valuation. Use the sale-price override if your valuation follows a different assumption.
What costs or risks are excluded?
Income tax, depreciation, capital-gains tax, recapture, mortgage insurance, refinancing, major unbudgeted repairs, sales timing and changing loan rates are excluded. IRR can be ambiguous when cash flows change signs more than once. Results do not establish that a property is affordable or suitable.
How does the loan schedule work?
Monthly interest uses the fixed annual rate divided by 12. Payments amortize the loan over its term, with the last payment adjusted to clear the balance. If the holding period exceeds the loan term, subsequent months have no debt payments.