Rental Property Cash Flow Calculator
Calculate monthly and annual cash flow from a rental property after all expenses.
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How to use this calculator
- 1
Enter your monthly rent and mortgage payment.
- 2
Add annual property tax and insurance costs.
- 3
Set maintenance reserve, vacancy rate, and property management fee as percentages of rent.
- 4
See your monthly and annual net cash flow after all expenses.
Frequently asked questions
What is a good cash flow for a rental property?
A common benchmark is $100–$200 per door per month in positive cash flow. However, this varies by market. In high-cost cities, investors sometimes accept breakeven or slight negative cash flow in exchange for strong appreciation potential.
Should I include mortgage principal in expenses?
The full mortgage payment (principal + interest) is included here as a cash expense even though principal repayment builds equity. For purely a cash flow analysis, this is the right approach — it shows what actually leaves your account each month.
What vacancy rate should I use?
A 5–10% vacancy rate is typical for most single-family rentals in established markets. Use local data if possible — your area's historical vacancy rate is the most accurate input. Higher-demand urban markets may have 3–5% vacancy; rural markets may be 10–15%.
Rental Property Cash Flow Calculator
Why cash flow is the foundation of rental investing
Rental property investors use cash flow — not appreciation — as the bedrock of investment performance. Appreciation is uncertain and unrealized until you sell. Positive cash flow means the property pays for itself and generates income every month, providing resilience during down markets and compounding wealth over time.
The 50% rule explained
A popular landlord shortcut is the 50% rule: expenses other than the mortgage (taxes, insurance, maintenance, vacancy, management) will consume roughly 50% of gross rent over time. If rent is $2,000/month, budget $1,000 for operating expenses and use the remaining $1,000 for debt service. This calculator is more precise, but the 50% rule is a useful quick sanity check.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →