Net Income Return

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

Example Result

Sample Data

-4.54%

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

-$4,023 / $110,830 x 100

-4.54%

What This Means

A sample property priced at $385,000 with $2,850/month rent has a net income return of -4.54% at Purchase (Month 0). 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.

Inputs That Determine Net Income Return

Cash Flow After Tax

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

-$4,023

Purchase

Total Cash Invested

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

$110,830

Purchase

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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.