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Cash Flow After Tax (CFAT) Calculator

Estimate after-tax cash flow using NOI, interest, depreciation, principal, and tax rate.

Cash Flow After Tax (CFAT) Calculator

Estimate after-tax cash flow using NOI, interest, depreciation, principal, and tax rate.

Guide

Depreciation shields taxable income but is non-cash—added back to CFAT.

  • CFAT helps assess cash available for debt service, reserves, and dividends.
  • This simplified model ignores state taxes and other adjustments.

Related Calculators

Real‑estate cash flow and financing

Rental Yield

Income return estimate.

DSCR

Debt service coverage.

Mortgage Points Impact

Rate buy‑down effects.

Loan‑to‑Value (LTV)

Leverage and equity.

Frequently Asked Questions

SEO‑focused answers about CFAT and real‑estate taxation

What is Cash Flow After Tax (CFAT)?

CFAT is net cash generated after accounting for taxes. It starts with NOI, subtracts interest and taxes, adjusts for non‑cash depreciation, and subtracts principal repayments to show distributable cash.

Why is depreciation added back?

Depreciation is a non‑cash expense. It lowers taxable income (reducing taxes) but does not consume cash, so we add it back when computing after‑tax cash flow.

How does loan principal affect CFAT?

Principal repayment is a cash outflow that reduces loan balance but is not tax‑deductible. Therefore it lowers CFAT even though it builds equity.

Is CFAT the same as cash‑on‑cash return?

No. Cash‑on‑cash compares annual pre‑tax cash flow to initial equity. CFAT can be used in that ratio, but the metric itself is simply a dollar amount after taxes.

Which tax rate should I use?

Use your marginal tax rate for rental income after standard adjustments. If you qualify for special deductions (e.g., QBI or passive loss rules), consult a CPA to refine the effective rate.

Are state taxes included?

This calculator uses a single tax rate input. If you have both federal and state taxes, combine them into an effective rate or run scenarios for each.

How do passive losses impact CFAT?

Passive losses may offset rental income depending on income and material participation tests. They reduce taxes and increase CFAT, but rules are complex—seek professional advice.

Does CFAT include capital expenditures (CapEx)?

CFAT here excludes CapEx. Include a CapEx reserve in your budget to reflect roof, HVAC, or major replacements that affect available cash.

How do refinancing and interest‑only periods affect CFAT?

Lower interest or IO periods reduce current taxes and cash outflows, often increasing CFAT. However, future payments may rise—model the entire loan path when evaluating deals.

Can negative CFAT still be acceptable?

Sometimes—if you have strong appreciation or value‑add plans. Persistent negative CFAT stresses liquidity; ensure adequate reserves and a clear path to positive cash flow.

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Cash Flow After Tax (CFAT) Calculator

Estimate after-tax cash flow using NOI, interest, depreciation, principal, and tax rate.

How to use Cash Flow After Tax (CFAT) Calculator

Step-by-step guide to using the Cash Flow After Tax (CFAT) Calculator:

  1. Enter your values. Input the required values in the calculator form
  2. Calculate. The calculator will automatically compute and display your results
  3. Review results. Review the calculated results and any additional information provided

Frequently asked questions

How do I use the Cash Flow After Tax (CFAT) Calculator?

Simply enter your values in the input fields and the calculator will automatically compute the results. The Cash Flow After Tax (CFAT) Calculator is designed to be user-friendly and provide instant calculations.

Is the Cash Flow After Tax (CFAT) Calculator free to use?

Yes, the Cash Flow After Tax (CFAT) Calculator is completely free to use. No registration or payment is required.

Can I use this calculator on mobile devices?

Yes, the Cash Flow After Tax (CFAT) Calculator is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.

Are the results from Cash Flow After Tax (CFAT) Calculator accurate?

Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.