Decision intelligence
Explore debt service, NOI, cap rate and cash flow with transparent, editable assumptions.
Illustrative starting values—not live market data or a rent estimate. Edit the assumptions to model a property.
Based on the assumptions entered, this property is estimated to require approximately $997 per month from the investor after modeled operating costs, debt service and reserves.
This describes the entered scenario, not a verdict on the property. Approximately break-even means within $0.50/month of zero before rounding.
Test the income assumption
All other assumptions stay fixed. Negative rent scenarios are floored at zero. These rents are scenarios, not market rent estimates.
On smaller screens, scroll the table horizontally to compare every result.
| Monthly rent | Annual gross rent | Effective annual income | Annual NOI | Monthly cash flow | Annual cash flow | Cap rate | Cash-on-cash |
|---|---|---|---|---|---|---|---|
| $3,500 | $42,000 | $39,900 | $22,608 | -$1,871 | -$22,457 | 3.01% | -11.09% |
| $4,000 | $48,000 | $45,600 | $27,852 | -$1,434 | -$17,213 | 3.71% | -8.50% |
| $4,500Entered rent | $54,000 | $51,300 | $33,096 | -$997 | -$11,969 | 4.41% | -5.91% |
| $5,000 | $60,000 | $57,000 | $38,340 | -$560 | -$6,725 | 5.11% | -3.32% |
| $5,500 | $66,000 | $62,700 | $43,584 | -$123 | -$1,481 | 5.81% | -0.73% |
Work backward from the goal
Estimated break-even monthly rent
$5,641The approximate monthly rent required for $0 monthly operating cash flow after modeled operating expenses, debt service and reserves.
Difference from current entered rent: +$1,141/month ($1,141 more than the entered rent).
Target operating cash flow: $500/month
Required monthly rent:
$6,213Difference from current entered rent: +$1,713/month ($1,713 more than the entered rent).
Target annual cash-on-cash return: 5.00%
Required monthly rent:
$6,607Difference from current entered rent: +$2,107/month ($2,107 more than the entered rent).
These are mathematical targets, not achievable-rent forecasts. Vacancy and management costs are included in every solution. At 100% vacancy or management cost, retained rent is zero and no unique supported rent target is available. Cash-on-cash targets require a positive cash investment. Targets outside the supported input range are unavailable.
Separate from operating cash flow
Operating cash flow is income remaining after modeled property operating expenses, financing and reserves. Long-term total return may include operating cash flow, appreciation and mortgage principal reduction, realized through estimated sale proceeds.
A property can have weak or negative current cash flow and still produce a positive long-term return if appreciation and principal reduction are strong. Those outcomes are assumptions, not guarantees.
Positive appreciation assumptions should not be used to disguise weak current operating performance.
At the entered rent
Debt service assumes fixed-rate, fully amortizing financing. NOI excludes debt service, capital reserves, income taxes and depreciation. Management is a percentage of rent collected after vacancy; maintenance and reserves are fixed monthly dollars.
Cash flow subtracts debt service and entered reserves from NOI. The model excludes mortgage insurance, unentered loan costs, future tax effects and capital expenses beyond the entered reserve allowance. Cash invested excludes unentered initial reserves. Confirm each assumption independently.
This calculator is for educational and scenario-planning purposes only. Results are estimates based on the assumptions entered and are not guarantees of investment performance, appreciation, rent growth, financing terms, tax outcomes or future value.
Consult appropriate financial, tax, legal and lending professionals regarding your specific situation.
