True Cash Flow™

Cash flow before tax plus the cash benefit of depreciation tax savings.

Example Result

Sample Data

-$1,558

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

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True Cash Flow™ Formula

Cash Flow Before Tax + Cash Flow from Depreciation™

Cash Flow Before Tax -$4,246

+ Cash Flow from Depreciation™ —

= True Cash Flow™ -$1,558

What This Means

A sample property priced at $385,000 with $2,850/month rent has a true cash flow™ of -$1,558. 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.

Calculated From

True Cash Flow™ is calculated using these inputs:

Cash Flow Before Tax

Cash remaining after operating expenses and debt service.

-$4,246

Cash Flow from Depreciation™

Additional effective cash flow generated by depreciation tax savings.

$2,688

Used to Calculate

True Cash Flow™ is used as an input for these calculations:

True Cash on Cash ROI

Return Metrics

-1.76%

Platform Distribution

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Why It Matters

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.