True Cash Flow™
Cash flow before tax plus the cash benefit of depreciation tax savings.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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What This Means
A sample property priced at $385,000 with $2,850/month rent has a true cash flow™ of -$1,335 at Purchase (Month 0). Standard cash flow metrics ignore the very real cash benefit of depreciation tax savings. True Cash Flow™ captures the complete cash picture — both what the property earns and what it saves you in taxes. For investors in higher tax brackets, this difference can be substantial.
Where This Value Comes From
True Cash Flow™ is not entered directly — it is calculated from Cash Flow Before Tax and Cash Flow from Depreciation™. See the formula breakdown above and the detailed inputs below.
Inputs That Determine True Cash Flow™
Calculations That Use True Cash Flow™
Platform Distribution
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Standard cash flow metrics ignore the very real cash benefit of depreciation tax savings. True Cash Flow™ captures the complete cash picture — both what the property earns and what it saves you in taxes. For investors in higher tax brackets, this difference can be substantial.
Detailed Explanation
True Cash Flow™ adds the Cash Flow from Depreciation™ (the actual tax dollars saved through depreciation) back to Cash Flow Before Tax. While CFBT shows your operating cash flow, True Cash Flow™ reveals the total cash benefit including the money you keep by paying less in taxes.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
Gross Potential Rent
2Total annual rental income assuming full occupancy.
Effective Gross Income
2Actual expected income after vacancy and other income.
Net Operating Income
UIncome remaining after all operating expenses but before debt service.
Cash Flow Before Tax
VCash remaining after operating expenses and debt service.
Cash Flow After Tax
WCash remaining after all expenses, debt service, and estimated taxes.
Revenue Per Unit
2Effective gross income divided by the number of units.
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