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Cash Flow After Financing Calculator

Work out cash flow after financing instantly with clear inputs, formula shown and shareable results.

About Cash Flow After Financing Calculator

Cash flow after financing takes net operating income, deducts debt service and a reserve for capital replacement, then applies tax to what remains. The debt service coverage ratio shown alongside is the lender's key test: NOI divided by debt service, with 1.25 the usual minimum for stabilised property.

Formulas

Cash flow

Before tax = NOI - debt service - capex reserve; after tax = before tax x (1 - tax rate)

Coverage

DSCR = NOI / annual debt service

Worked example

With the default values below, Cash Flow After Financing Calculator returns Cash flow after tax of $232,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Net operating incomeminimum 0
1,200,000
Annual debt serviceminimum 0
850,000
Capital expenditure reserveminimum 0
60,000
Effective tax rateaccepts 0–60 %
20 %

Results

Cash flow after tax
$232,000.00
Cash flow before tax
$290,000.00
Debt service coverage ratio
1.412
Tax payable
$58,000.00

Step by step

  1. 1Values used
  2. 2Cash flow
  3. 3Coverage
  4. 4Cash flow after tax= 232,000.00
  5. 5Cash flow before tax= 290,000.00
  6. 6Debt service coverage ratio= 1.412
  7. 7Tax payable= 58,000.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or fees or charges into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is the Cash Flow After Financing figure worked out?

Before tax = NOI - debt service - capex reserve; after tax = before tax x (1 - tax rate). Cash flow after financing takes net operating income, deducts debt service and a reserve for capital replacement, then applies tax to what remains.

Why reserve for capital expenditure?

Roofs, lifts and plant fail on a long cycle but they fail. Treating cash flow as distributable without a reserve overstates sustainable income and eventually forces a capital call.

What values do I need to enter?

This calculator takes 4 inputs: Net operating income, Annual debt service, Capital expenditure reserve, Effective tax rate. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.

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