Rental Property Cash Flow Calculator
Model every expense in a rental property — vacancy, repairs, CapEx, property management, and more — to get an accurate monthly cash flow picture.
Property Details
Operating Expenses
Cash Flow Analysis
Enter monthly rent to see the cash flow analysis.
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How this works
Gross rent sounds good. Cash flow is what matters. The gap between them is filled by vacancy, operating expenses, and your mortgage. This calculator works through each layer systematically so no cost is forgotten.
Start with Effective Gross Income (EGI): Gross Rent × (1 − Vacancy%). A 5% vacancy on $1,800/month rent reduces income to $1,710 — $1,080/year that never reaches your account. From EGI, you subtract operating expenses (taxes, insurance, repairs, CapEx, management, HOA) and then the mortgage payment to get monthly cash flow.
The common mistake:new investors forget CapEx and repairs. They model the mortgage, taxes, and insurance correctly, then wonder why the property costs them money after the first HVAC failure. Budget 5% of rent for repairs and 5% for CapEx as a baseline — adjust based on the property's age and condition.
Use this calculator alongside the Cap Rate and Cash-on-Cashcalculators for a complete picture. Cap rate ignores financing; cash-on-cash and this calculator do not. Together, they tell you both the property's intrinsic quality and what you'll actually put in your pocket.
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Frequently Asked Questions
What is a good monthly cash flow on a rental?
$100–$200/month is often cited as the minimum threshold for a long-distance or passive investor. In competitive markets, $50–$100 can still be worth it for appreciation. Negative cash flow is only acceptable if you have strong conviction in equity growth and can cover the shortfall comfortably.
Why include CapEx (capital expenditure)?
CapEx covers big-ticket replacements: roof, HVAC, water heater, appliances. These costs do not show up monthly but averaging them (typically 5–10% of rent) prevents a surprise $8,000 roof from destroying your annual returns.
What vacancy rate should I use?
For most markets, 5% (about 18 days/year) is reasonable for a well-maintained, properly priced single-family. In weak rental markets or with high tenant turnover, use 8–10%. Never model 0% — every property has some turnover eventually.
What is the expense ratio, and what is a good number?
The expense ratio is operating expenses divided by effective gross income. A well-run single-family typically runs 35–50% (excluding mortgage). Commercial investors use 40–50% as their rule of thumb. Higher ratios mean less room for error if rents decline or expenses spike.