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Rental property cash flow calculator
See what a rental actually puts in your pocket each month after vacancy, operating costs and the mortgage.
Monthly results
How rental cash flow is calculated
Effective gross income = (rent + other income) − vacancy
NOI = effective gross income − operating expenses
Cash flow = NOI − mortgage payment (principal + interest)
The mortgage payment uses the standard amortization formula: P × r ÷ (1 − (1 + r)−n), where r is the monthly rate and n the number of payments.
For example, a $200,000 loan at 6% for 30 years comes to $1,199.10 a month.
Worked example
With $2,000 rent, 5% vacancy, $2,400/yr taxes, $1,200/yr insurance, 5% repairs, 5% CapEx and 8% management: effective gross income is $1,900, operating expenses $652, and NOI $1,248. After a $1,199.10 mortgage payment, cash flow is about $48.90 a month. The deal is thin but positive (DSCR 1.04).
Lenders often look for a DSCR of 1.20–1.25 or higher on investment property loans. Requirements vary by lender.
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FAQ
What is a good monthly cash flow for a rental?
There's no single number. Many investors target $100–$300 per door per month after reserves, but what counts as good depends on the price, the market, and how much appreciation and principal paydown you expect.
Should I include CapEx reserves?
Yes. Roofs, HVAC, water heaters and appliances wear out. Setting aside a percentage of rent (often 5–10%) keeps the cash-flow estimate honest.
Is cash flow the same as taxable rental income?
No. Cash flow subtracts principal payments but not depreciation. Schedule E is the reverse: it deducts depreciation and mortgage interest, but not principal. That's why taxable income is often lower than cash flow.