Follow the default numbers.
With purchase price of $350,000, monthly rent of $2,400, the model gives annual cash flow: -$4,522.
The formula is income, operating expenses and financing. Open the breakdown to trace expenses and assumptions. Change one input at a time to see how your decision changes. This example uses scenario inputs; it is not an offer, tax bill, appraisal or legal determination.
One property, one set of assumptions
This model combines scheduled income, vacancy, operating costs, acquisition cash and financing. NOI excludes debt and capital reserves; annual cash flow subtracts both. The cap rate, DSCR, GRM, yield and cash-on-cash figures all come from that same model. This avoids the inconsistent expense definitions that can arise when several isolated calculators analyze the same property.
The sale is part of the return
The projection compounds property value at the entered appreciation rate, deducts selling costs and repays the remaining loan balance. Annual NOI and capital reserves grow together at the entered NOI growth rate. Cash flows occur at year end, with net sale equity in the final year. Property tax resets, refinancing and one-time major repairs are not automatically forecast; add scenario allowances where appropriate.
IRR includes time and the exit
The internal rate of return is the discount rate where the modeled cash flows have zero net present value. It includes initial investment, annual cash flow and final net equity. It is before income tax and assumes the entered operating and sale scenarios occur. Cash flows with repeated sign changes can have multiple IRRs; a single number may not adequately describe such a project.
Build a downside case
Run a slower lease-up, higher expenses, a larger replacement reserve and lower appreciation. An attractive base case can hide a fragile cash buffer. Check balloon maturities separately for interest-only loans, because this model retains the principal until sale. Save alternative results in the deal file and keep your source rent roll, insurance quote and local tax estimate with the analysis.
Keep your assumptions with the result
Save the calculation to your deal file to reuse compatible inputs in another tool. The file stays in this browser on this device. Download the CSV to open the complete inputs, results and schedule in Excel or Google Sheets. Use PDF to print the report or save it as a PDF. A share link includes entered financial figures in its URL, so use it only with people you intend to share those numbers with.