Investment Property Cash Flow Calculator
This property produces $27,431 of net operating income, a 3.66% cap rate, and -$780.19 of monthly cash flow after the mortgage.
Monthly shortfall
$780.19
$27,431 net operating income less $36,793 of annual mortgage payments, divided across twelve months.
- Cap rate
- 3.66%
- Cash-on-cash return
- -4.51%
- Debt service coverage
- 0.75
- Expense ratio
- 31%
NOI ÷ purchase price
On $207,500 invested
Lenders often want 1.10 or higher
Operating costs as a share of income
| Annual | |
|---|---|
| Gross scheduled rent | $40,800 |
| Less vacancy | −$1,224 |
| Effective gross income | $39,576 |
| Property taxes | −$5,200 |
| Insurance | −$1,800 |
| Repairs and maintenance | −$1,979 |
| Property management | −$3,166 |
| Net operating income | $27,431 |
| Less mortgage payments | −$36,793 |
| Annual cash flow | -$9,362 |
Net operating income excludes your mortgage
That is deliberate. NOI measures how the property performs regardless of how you financed it, which is what makes cap rates comparable between properties. Your mortgage payment is then subtracted from NOI to arrive at cash flow.This property does not carry itself
You would need to contribute $780.19 a month from other income. That can still make sense as a long-term play on principal repayment and appreciation, but it should be a deliberate choice.How a lender treats rental income for qualification varies significantly — some use a percentage offset against the property’s costs, others add a share to your income. Strong cash flow here does not automatically mean the income will qualify you. Clover Mortgage Inc. is a licensed mortgage brokerage. This calculator provides estimates for information only and is not an offer of credit, an approval, or financial advice.
Every mortgage is different. A Clover Mortgage broker can confirm what you actually qualify for across more than 50 lenders — at no cost to you.
Monthly shortfall
$780.19
Common questions
- Why does NOI exclude the mortgage?
- Net operating income measures the property's performance independent of how it was financed, which is what makes cap rates comparable between properties. Your mortgage payment is then subtracted from NOI to get cash flow.
- Will a lender count this rental income?
- Lenders treat rental income very differently — some use a percentage offset, others add a share to your income, and requirements vary by property type. Strong cash flow here does not automatically mean the income qualifies you.