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 need an upfront cash amount greater than $0. Cash flow and equity 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
Save and compare your property analyses.
Compare offers, estimate taxes and plan for a sale.
- Taxes: interest deductions, depreciation and bonus-depreciation comparisons.
- Sale: appreciation, selling costs and holding-period returns.
- Scenarios: changes in rent, vacancy, costs and financing, plus prices that meet your cash-flow target.
Save up to 100 analyses and compare four side by side.
$10/month. Cancel anytime. You can still view saved analyses after cancellation.
Billing is in test mode. No real charges are made.
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 · includes 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 bonus depreciation, including usable losses and sale taxes.
See a worked 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 tax savings from bonus depreciation.
See how bonus depreciation changes your deductions, usable tax savings, carried losses and estimated sale taxes.
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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 estimated sale taxes
Year-by-year deductions and taxes
Sale gain and depreciation recapture
Methods, limits and tax sources
Both options use the asset allocation you enter. 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 estimated 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
Estimate sale proceeds after selling costs and the mortgage payoff.
Net sale proceeds before taxN/AAfter selling costs and mortgage payoff
Annualized return before taxN/AIRR · includes rental cash flow and sale proceeds
Before tax, even when income-tax estimates are enabled. These results exclude capital-gains tax, depreciation-related tax and the release of suspended losses. Sale taxes are estimated in the bonus-depreciation comparison.
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 the cash you need at purchase and replacement funding before committing.
Rent growth, downside & financing
PLUSCompare rent growth over time. Use the controls to test lower rent, longer vacancies and higher costs in Year 1.
Test lower rent and higher costs.
See how lower rent, higher costs and different interest rates affect cash flow, cash shortfalls and break-even rent.
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See PlusYear-one downside
Combined downside cash flow / monthN/A
Annual cash shortfallN/A
Break-even rent / month · your assumptionsN/A
Rent growth over time
Your rent-growth assumption is highlighted. To add another rate, change Annual rent change under Rent & expense growth. 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 capped at the remaining occupied weeks. Break-even rent uses your original assumptions and includes the mortgage and reserves. Annual cash shortfall is the cash-flow loss for that scenario, not a full emergency-reserve estimate.
Financing comparison
Compare interest rates with the same down payment, term, rent and expenses. Enter a lender quote under Interest rate to highlight it here.
Work backward from a cash-flow target
Purchase price for your cash-flow target
PLUSFind the highest price that meets your monthly cash-flow target, using your assumptions and the downside settings above.
Find a price that meets your cash-flow target.
Calculate the highest purchase price and upfront cash for your assumptions and the downside scenario. Included in Plus for $10/month.
See PlusYour assumptions
N/ADownside case
N/AHow price targets are calculated
Uses your Year 1 assumptions, before income tax, including 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 purchase. The target is based on your cash-flow goal. It does not estimate market value or what a seller will accept.