Monthly cash flow
N/A
After expenses, reserves & mortgage
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Rental property analyzer
Your first year
Correct the highlighted inputs to update your results.
Cash-on-cash return
N/A
Annual cash flow ÷ upfront cashUpfront cash needed
N/A
Down payment + closing + repairsPercentage returns are undefined when upfront cash is $0. Cash flow and equity amounts are still shown.
Cash flow & equity details
Cash flow + equity
Year 1- Annual cash flow
- N/A
- Equity gained from loan paydown
- N/A
- Annual cash + equity gain
- N/A
Annual cash + equity return
N/A
On your upfront cash
Loan paydown builds ownership; it is separate from spendable cash. Appreciation is not included.
Where the rent goes
Monthly · Year 1Cash flow & equity over time
Chart: monthly cash flow| Year | Monthly cash flow | Cash-on-cash | Equity gained / year | Cash + equity return | Equity at year end | Loan balance |
|---|
Cash + equity return combines that year's cash flow and loan paydown, divided by original upfront cash. Equity at year end includes your down payment and cumulative principal paid.
Assumptions & methods
- Upfront cash
- Net operating income
- per year, before the mortgage and capital expense reserve. Cap rate: .
- Property equity
- at the end of Year 1: purchase price minus the remaining loan balance. Property value is held constant; closing costs and renovation spending are not automatically treated as added property value.
- Growth & timing
- Growth starts in Year 2. Year 5 means months 49–60. Mortgage payments stop at the end of the loan term.
- What's outside this model
- Core results are before income tax and hold property value constant. Plus adds tax and sale scenarios. Refinancing, rehab downtime and lender-specific costs require separate estimates.
Planning estimates. Verify inputs and results before acting. Terms & privacy.
RENTAL WIRE PLUS
Keep the full picture with each property.
Taxes, sale planning and what-if scenarios, saved together.
- Taxes: interest deductions, depreciation and bonus-depreciation comparisons.
- Sale: appreciation, selling costs and holding-period returns.
- Scenarios: rent growth, vacancy, financing and your target purchase price.
Save up to 100 analyses and compare four side by side.
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Taxes, sale & scenarios Plus
Saved results. Plus is required to update these estimates.
Income taxes & depreciationOptional · U.S.
Estimate cash flow after mortgage-interest and depreciation deductions.
Monthly cash flow after income taxN/AYear 1 · after the same reserves
After-tax cash-on-cash returnN/AAnnual cash after tax ÷ upfront cash
See the tax calculation
The mortgage payment already reduces cash flow. Only its interest portion reduces taxable rental income. Depreciation is a tax deduction, not cash received or money spent this year.
After-tax cash flow over time
| Year | Interest deduction | Depreciation | Income tax / year | After-tax cash / month | After-tax cash-on-cash | Loss carried forward |
|---|
Tax assumptions and sources
This illustration assumes a new purchase ready for rent on January 1, 100% rental use, cash-basis expenses and a fixed tax rate. Residential building basis uses 27.5-year straight-line depreciation with the mid-month convention: 11.5 months in Year 1, then up to 12 months a year until the basis is exhausted. Dates and deductions on your actual tax return can differ.
It excludes sale taxes, new improvements after purchase, cost segregation, bonus depreciation, loan-point amortization, QBI, NIIT, personal use, conversions from a home and refinancing. Depreciation can reduce basis and increase taxable gain when you sell. The loss options are assumptions, not a determination that you qualify.
Sources: IRS rental income and depreciation, passive activity and at-risk limits, tax treatment when selling. Confirm your basis, deductions and usable losses before relying on an after-tax result.
Bonus depreciation & cost segregation
Compare regular and upfront deductions, including usable losses and taxes when you sell.
See a worked example
Open to load the example.
Example assumptions, not a recommended allocation. Full current use assumes enough qualifying income to absorb the loss. Later deductions and sale taxes also affect the result.
Compare the tax benefit you could actually use.
Plus compares deductions, usable savings, carried losses and estimated sale taxes. Saved scenarios, rent-growth tables and price targets are included.
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Get PlusAdditional Year 1 federal tax savingsN/ABonus compared with regular depreciation
Value today of the differenceN/AIncludes timing, added cost and modeled sale taxes
Year-by-year deductions and taxes
Sale gain and depreciation recapture
Methods, limits and tax sources
Both columns use your supplied asset allocation. Regular depreciation uses 5-year, 200% declining balance and 15-year, 150% declining balance, switching to straight-line when it gives the larger deduction. The bonus column deducts the eligible short-life basis in Year 1. The remaining building uses 27.5-year straight-line depreciation. This is a timing comparison, not a cost-segregation study.
The sale occurs at the end of Year 2–30. The model uses mid-month building depreciation and half-year short-life depreciation, including sale-year adjustments. It assumes a fully taxable sale of the entire rental activity to an unrelated buyer, with no other section 1231 transactions or prior section 1231 losses. Ordinary recapture, depreciation-related gain and other capital gain are calculated separately. Released losses offset modeled sale income and the additional ordinary income you enter; excess losses receive no cash value here.
Rates are fixed illustrative federal rates, not a full tax-bracket calculation. State taxes, NIIT, QBI, section 179, exchanges, catch-up deductions for old properties, personal use, mid-quarter or alternative depreciation, and new improvements after purchase are excluded. The annual loss-offset input assumes applicable passive-loss, at-risk and other limits have already been checked. Startup reserves cover property operating shortfalls; owner income taxes are separate cash flows.
Sources: IRS depreciation rules, rental-loss limits, asset sales and recapture, capital-gain calculations. Confirm inputs and treatment before acting.
Holding period & saleOptional · before tax
Model appreciation, selling costs and the mortgage payoff.
Net sale proceeds before taxN/AAfter selling costs and mortgage payoff
Annualized return before taxN/AIRR · includes rent cash flow and exit cash
Before tax, even when the income-tax panel is enabled. This does not estimate capital-gains tax, depreciation-related tax or the release of suspended losses on sale. Net proceeds are not the same as take-home cash after those taxes.
How the holding-period return works
IRR treats purchase cash and extra startup reserves as the initial outflow. Startup reserves fund annual operating shortfalls before further cash is required. Positive operating cash is received at each year end; net sale proceeds and remaining reserves are received at exit. Loan principal is already reflected in the remaining balance; it is not added again as annual cash. A negative sale result means extra cash is needed to close. When cash flows could have multiple IRRs, the annualized result is left unavailable.
The operating projections assume immediate rental availability, a fixed-rate fully amortizing loan, and your existing rent, expense and reserve budgets. Renovation downtime, refinancing and future capital improvements need separate scenarios. Check startup liquidity and replacement funding before committing.
Rent growth, downside & financing
PLUSCompare annual rent-growth assumptions over time. The controls below also test year-one losses from lower rent, longer vacancies and higher expenses.
Test lower rent and higher costs.
Plus shows a rent-and-expense table, interest-rate scenarios, annual cash shortfall and break-even rent. Saved scenarios and comparisons are included.
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See PlusYear-one downside
All three together / monthN/A
Annual cash shortfallN/A
Break-even rent / month · original inputsN/A
Rent growth over time
Your rent-growth assumption is highlighted. To add another rate, change Annual rent change under Over time. All rows use the same expense-growth assumption.
Downside scenarios
| Scenario | Cash flow / month | Cash flow / year | Monthly change |
|---|
Where cash flow turns negative
Compare rent and expense changes together. Red cells are monthly losses; green cells are positive cash flow. Each includes your extra-vacancy setting.
How downside scenarios are calculated
Year 1, before income tax. Higher expenses include operating costs and capital reserves; the mortgage stays fixed. Extra vacancy is averaged across the year and adds up to the remaining occupied weeks. Break-even rent uses your original assumptions and includes the mortgage and reserves. Annual cash shortfall is the modeled cash-flow loss, not a full emergency-fund estimate.
Financing comparison
Compare modeled interest rates using the same down payment, term, rent and expenses. Enter an actual lender quote in Interest rate to make it the highlighted row.
Work backward from a cash-flow target
Purchase price for your cash-flow target
PLUSFind the highest price that meets your monthly goal, using your assumptions and the downside settings in the stress test above.
Find a price that works for your target.
Plus calculates your price limits and upfront cash under both scenarios. Stress tests, saved analyses and comparisons are included for $10/month.
See PlusYour assumptions
N/ADownside case
N/AHow price targets are calculated
Uses the property numbers you enter. Year 1, before income tax. Includes mortgage payments and reserves. Some all-cash or high-cost assumptions cannot produce a price limit. Percentage down payments and price-based costs change with price; dollar amounts stay fixed. Use 100% down for an all-cash search. A target price is a model result, not a valuation or a guarantee that a seller will accept it.