Calculate monthly cash flow, cash-on-cash return, and DSCR for rental properties with financing.
| Metric | Good Target | What It Measures |
|---|---|---|
| Cash-on-Cash Return | 8-12%+ | Annual cash flow / cash invested |
| DSCR | 1.25+ | NOI / debt service (lender requirement) |
| Cap Rate | 5-8% | NOI / property value |
| Cash Flow | $200+/mo | Monthly income after all expenses |
Debt Service Coverage Ratio = NOI / Annual Mortgage Payments. Lenders typically require 1.25+ for investment property loans. Below 1.0 means the property does not generate enough income to cover the mortgage.
It measures your annual return on the actual cash invested (down payment + closing costs). A 10% CoC means you earn $10,000/year on a $100,000 investment.
Enter the purchase price, down payment, mortgage terms, monthly rent, vacancy rate, and operating expenses. The calculator shows monthly and annual cash flow.
Cash Flow = Gross Rent β Vacancy β Operating Expenses β Mortgage Payment. Cash-on-Cash Return = Annual Cash Flow / Total Cash Invested Γ 100%.
Rental property $200K, 25% down ($50K), 7% rate, rent $1,800/mo, 5% vacancy, $600/mo expenses: Mortgage = $997. Cash flow = $1,800 β $90 β $600 β $997 = $113/mo.
The 1% rule: monthly rent should be β₯ 1% of purchase price. Target 8-12% cash-on-cash return. Budget 5-10% for vacancy and 1% of value annually for maintenance. Screen tenants thoroughly.