Net Income Return

After-tax cash flow as a percentage of total cash invested.

Example Result

Sample Data

-4.79%

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

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Net Income Return Formula

Cash Flow After Tax / Total Cash Invested x 100

-$4,246 / $111,163 x 100

-4.79%

What This Means

A sample property priced at $385,000 with $2,850/month rent has a net income return of -4.79%. While cash-on-cash return is popular, it ignores taxes. Net income return shows what you actually keep. Properties with strong depreciation benefits may show similar net income returns despite lower pre-tax cash flow.

Where This Value Comes From

Net Income Return is not entered directly — it is calculated from Cash Flow After Tax and Total Cash Invested. See the formula breakdown above and the detailed inputs below.

Calculated From

Net Income Return is calculated using these inputs:

Cash Flow After Tax

Cash remaining after all expenses, debt service, and estimated taxes.

-$4,246

Total Cash Invested

Total cash committed to the property: closing costs, rent-ready, reserves, and negative cash flow.

$111,163

Platform Distribution

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Why It Matters

While cash-on-cash return is popular, it ignores taxes. Net income return shows what you actually keep. Properties with strong depreciation benefits may show similar net income returns despite lower pre-tax cash flow.

Detailed Explanation

Net Income Return measures your after-tax cash flow relative to total cash invested. It is the after-tax equivalent of cash-on-cash return and gives the most conservative view of your cash return.