Cash Flow Growth Rate

Percentage change in cash flow from Year 1 to Year 2.

Example Result

Sample Data

14.38%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Cash Flow Growth Rate Formula

(Year 2 Cash Flow - Year 1 Cash Flow) / |Year 1 Cash Flow| x 100

(Year 2 -$4,246 - Year 1 Cash Flow) / |Year 1 Cash Flow| x 100

14.38%

What This Means

A sample property priced at $385,000 with $2,850/month rent has a cash flow growth rate of 14.38%. A growing cash flow means your investment is improving over time. If rent growth outpaces expense growth (which is typical), cash flow grows faster than either one individually due to the fixed mortgage payment.

Where This Value Comes From

Cash Flow Growth Rate is not entered directly — it is calculated from Cash Flow Before Tax. See the formula breakdown above and the detailed inputs below.

Calculated From

Cash Flow Growth Rate is calculated using these inputs:

Cash Flow Before Tax

Cash remaining after operating expenses and debt service.

-$4,246

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Why It Matters

A growing cash flow means your investment is improving over time. If rent growth outpaces expense growth (which is typical), cash flow grows faster than either one individually due to the fixed mortgage payment.

Detailed Explanation

The annual growth rate of cash flow between Year 1 and Year 2. This indicates the trajectory of your income growth and how quickly cash flow is improving.