Rental Property Cash Flow Calculator (Free)

How rental property cash flow is calculated

Cash flow = rent − vacancy − operating expenses − mortgage payment

Operating expenses cover property taxes, insurance, maintenance, management and anything else you pay each month. What is left after those is net operating income. Subtract the loan payment and you have cash flow.

With the starting numbers, the property brings in about $291 a month, or roughly $3,490 a year.

Costs new landlords forget

• Vacancy. One empty month a year is more than 8% of annual rent.
• Turnover. Paint, cleaning and small fixes between tenants add up.
• Big repairs. Roofs, HVAC and water heaters hit all at once, so set money aside every month.
• Management. Even if you do it yourself, include it to see whether the deal survives if you hire help later.
• Everything else. Lawn, snow, HOA dues, pest control and owner-paid utilities go in the other costs field.

Many landlords budget somewhere around 5 to 10 percent of rent for maintenance and keep a separate reserve for big items. Your own repair history is a better guide than any rule of thumb. See How Much Should Landlords Budget for Maintenance?

Is my cash flow good enough?

Positive is the minimum. Most investors want a cushion that can absorb a bad month, like a surprise repair or a long vacancy. Stress-test the deal by raising vacancy, lowering rent a little or raising the interest rate. If cash flow only stays positive when everything goes right, the deal is fragile.

Frequently asked questions

Is cash flow the same as profit?

Not exactly. Cash flow here is before income taxes, and part of each mortgage payment goes to principal, which builds equity but still leaves your bank account.

What expense percentages should I use?

There is no universal number. Start with real quotes for taxes and insurance, then use your own repair history. If you do not have one yet, pick a conservative percentage and adjust as you learn.

My mortgage payment includes escrow. What do I enter?

Enter taxes and insurance in their own fields and use only principal and interest for the loan, so nothing is counted twice.

Keep reading: Cash-on-Cash Return Calculator, How to Estimate Rental Property Cash Flow, Rental Property Expense Categories.

A zero cash investment makes cash-on-cash return undefined, so the calculator shows N/A. Percentages and costs must stay within the input limits. Replacement reserves start at zero; enter an amount appropriate for the property.