Cash Flow Calculator
Calculate monthly cash flow from rental income minus all expenses.
Expense Breakdown
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This calculator helps you determine whether a rental property will generate positive or negative monthly cash flow. Here is how to use it:
- Enter your monthly rent. This is the gross rent you expect to collect from tenants each month. Use comparable rental listings in the area to estimate if you do not have a tenant yet.
- Set the vacancy rate. A 5% vacancy rate assumes the property is empty for about 2.5 weeks per year. Increase this for areas with higher turnover or seasonal rentals.
- Enter your mortgage payment. This is the monthly principal and interest payment. If you own the property free and clear, enter 0.
- Add recurring expenses. Property tax, insurance, maintenance, property management fees, HOA dues, and any other monthly costs. Property management typically runs 8-10% of monthly rent. Maintenance is often budgeted at 1% of property value per year, divided by 12.
The result updates instantly as you type. A green number means positive cash flow (the property makes money each month). A red number means negative cash flow (you are paying out of pocket). Use the Share button to send a pre-filled link to a partner or advisor.
About Rental Cash Flow
Cash flow is the simplest measure of whether a rental property pays for itself. It is the money left over each month after collecting rent and paying every expense. Positive cash flow means the property generates income beyond its costs. Negative cash flow means you subsidize the property from other income.
Cash flow is not the only measure of investment quality. A property with modest cash flow may still build wealth through appreciation, equity paydown, and tax benefits. But cash flow is the most immediate and tangible metric, and many investors use it as a minimum threshold before considering a deal.
All calculations run entirely in your browser. We never see or store your financial data.
Frequently Asked Questions
What is a good cash flow for a rental property?
Many investors target at least $100 to $200 per unit per month in positive cash flow. However, this depends on the market, property price, and your investment goals. In expensive markets, breaking even on cash flow while building equity can still be a viable strategy. In lower-cost markets, $200 or more per unit is achievable.
What vacancy rate should I use?
A 5% vacancy rate is a common starting point for stable, long-term rental markets. This accounts for about 2-3 weeks of vacancy per year during tenant turnover. In markets with higher turnover or seasonal demand, use 8-10%. For short-term or vacation rentals, vacancy rates can be 20-40% depending on location and season.
What expenses should I include?
Include all recurring costs: mortgage payment (principal and interest), property taxes, insurance, maintenance and repairs, property management fees, HOA dues, and any utilities you cover. A common rule of thumb is to budget 1% of the property value per year for maintenance. Do not forget to account for capital expenditures like roof replacement or HVAC by setting aside a monthly reserve.
Does cash flow include mortgage principal paydown?
Cash flow is calculated after the full mortgage payment, which includes both principal and interest. While the principal portion builds your equity, it still comes out of the rent collected. So cash flow reflects your actual take-home amount each month. Equity buildup is a separate benefit tracked alongside cash flow in a full investment analysis.