Rental Property Cash Flow Calculator
Purchase Information
Rental Income
Annual Operating Expenses
How to Use This Calculator
This calculator helps you analyze the cash flow of a rental property investment. Enter the purchase details, expected rental income, and operating expenses to see if the property will generate positive or negative cash flow.
Key Metrics Explained:
- Cash Flow: Monthly/annual income after all expenses and mortgage payments
- Cap Rate: Return on investment based on property value (NOI ÷ Purchase Price)
- Cash-on-Cash Return: Return on actual cash invested (Annual Cash Flow ÷ Total Cash Invested)
- NOI: Net Operating Income - rental income minus operating expenses (before mortgage)
Analyze a rental property's cash flow from its purchase price, financing, rent, vacancy and operating expenses: net operating income, monthly and annual cash flow, cap rate, cash-on-cash return and the total cash you need to buy it.
Formula
Worked Example
Vacancy trims the $28,800 of rent to $27,360, and expenses including 8% management take $9,689, leaving $17,671 of NOI. The $1,496.93 monthly mortgage costs $17,963 a year, so the property runs slightly negative before appreciation and principal paydown.
Frequently Asked Questions
What is a good cash flow for a rental property?
Many investors look for at least $100–$200 a month per unit after all expenses and reserves, or a cash-on-cash return of 8% or more. Positive cash flow matters most when you rely on the rent to carry the property through repairs and vacancies.
What expenses do new landlords forget?
Vacancy (5–10% of rent), maintenance and capital expenses such as roofs and water heaters (often 5–10% each), property management (8–10% even if you self-manage, to value your time), and rising taxes and insurance.
What is the difference between cap rate and cash-on-cash return?
The cap rate is NOI divided by the price and ignores financing, so it compares properties. Cash-on-cash return is the cash flow after the mortgage divided by the cash you put in, so it measures the return on your money with your loan.