Investor tools
Rental Cash Flow Calculator
Check whether a rental pays for itself. Enter the price, loan, rent and expenses to see the numbers that matter.
- Monthly cash flow, NOI, cap rate and cash-on-cash return
- Vacancy, management, reserves and other expenses built in
- Optional long-term view with growth, a future sale and IRR
Example numbers are loaded. Every number is an example you can change. None of them is a Beltway Lending rate, fee or term.
Your estimate
Estimates only. Not financial, tax or legal advice, not a loan offer or commitment to lend, and not a guarantee of results. Rates and costs shown are examples or numbers you entered, not Beltway Lending's rates or terms. Actual terms depend on the property, the borrower and the loan program. Calculator terms
- Effective gross income (EGI) = monthly rent x 12 x (1 minus vacancy %) + other income per year.
- Operating expenses = taxes + insurance + HOA x 12 + utilities x 12 + monthly rent x 12 x (management % + maintenance % + capital reserve %).
- Net operating income (NOI) = EGI minus operating expenses. NOI leaves out the loan payment.
- Cap rate = NOI / purchase price.
- Loan amount = purchase price x (1 minus down payment %). The monthly payment uses the standard fixed-rate formula for principal and interest.
- Annual cash flow = NOI minus 12 monthly loan payments. Monthly cash flow = annual / 12.
- Cash invested = down payment + closing costs + repairs.
- Cash-on-cash return = annual cash flow / cash invested.
- Gross rent multiplier (GRM) = purchase price / (monthly rent x 12).
- 1% rule = monthly rent / (purchase price + repairs). A quick screen many investors use; 1% or more "meets" it. It is a rule of thumb, not a lending test.
- Long-term view. Each year, rent and other income grow at the rent growth rate, and taxes, insurance, HOA and utilities grow at the expense growth rate. Percent-based expenses follow rent. The loan payment stays fixed until the loan is paid off. Sale price = purchase price x (1 + value growth) ^ years held. Net sale proceeds = sale price minus cost to sell minus the loan balance still owed. Total return = all yearly cash flow + net sale proceeds minus cash invested. IRR is the yearly rate that makes those cash flows worth zero today. Taxes on income or gain are not included.
Not included: income taxes, depreciation, refinancing, lender fees beyond the closing costs you enter, and any changes in interest rate.
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