Free Tool
Rental Property Cash Flow Calculator
See what a rental really puts in your pocket each month after vacancy, taxes, insurance, management, maintenance, capex and the mortgage, plus the DSCR and the break-even rent.
| Monthly income (rent + other) | — |
| Vacancy allowance | — |
| Income collected | — |
| Monthly operating costs | — |
| Net operating income (monthly) | — |
| Monthly mortgage payment (principal & interest) | — |
Assumptions: fixed-rate loan, principal & interest only; property tax and insurance entered separately. Management, maintenance and capex are percentages of income collected. Break-even rent is the monthly rent at which cash flow equals zero. No income tax, depreciation or rent growth is modeled. Estimates only, not advice.
How to calculate rental property cash flow
Cash flow is what is left each month after the property has paid for itself. The calculation is: rent collected − operating expenses − mortgage payment. Rent collected is potential rent (plus other income such as parking or laundry) less a vacancy allowance. Operating expenses are property tax, insurance, HOA dues, utilities you pay, and allowances for management, maintenance and capital expenditures. Positive cash flow means the property supports itself; negative means you top it up from other income. For return percentages built on this number, use the rental property ROI calculator or the cash-on-cash return calculator.
Worked example with the default inputs
- Price $300,000, down payment $60,000, so the loan is $240,000 at 6.5% over 30 years: principal and interest $1,516.96/month.
- Rent $2,500 + other income $100 = $2,600. Less 5% vacancy ($130), rent collected is $2,470.00.
- Fixed costs: property tax $300 + insurance $120 = $420. Percentage costs on rent collected: management 8% ($197.60) + maintenance 5% ($123.50) + capex reserve 5% ($123.50) = $444.60. Total operating costs: $864.60.
- Net operating income = $2,470.00 − $864.60 = $1,605.40/month.
- Cash flow = $1,605.40 − $1,516.96 = $88.44/month, or about $1,061 a year.
- Debt service coverage ratio (DSCR) = NOI ÷ mortgage payment = 1.06. Lenders on investment properties often look for a DSCR comfortably above 1.0.
- Break-even rent: the rent at which cash flow is exactly zero is about $2,386, because management, maintenance and capex rise and fall with rent.
The cash flow here is thin, which is typical when you run the numbers honestly with maintenance and capex reserves included. A property that "cash flows" only because reserves were left out may not actually cash flow.
Why include maintenance, capex and vacancy?
Those lines are not "extras". Units sit empty between tenants, appliances fail, and roofs and HVAC systems wear out on a schedule. Rules of thumb you will see online (for example setting aside a percentage of rent for maintenance and capex) are rough starting points, not guarantees. Replace them with real quotes or your own history as soon as you have them, and track actuals in a rental income and expense spreadsheet or the free tracker below.
Cash flow, cash-on-cash and cap rate
Monthly cash flow is a dollar figure. Cash-on-cash return compares annual cash flow with the cash you invested, and cap rate compares NOI with price before financing (see the cap rate calculator). Knowing the dollar cash flow, and the rent you need to break even, helps you judge how much cushion a deal has if vacancy or repairs run above plan.
Frequently asked questions
How do you calculate monthly cash flow on a rental property?
Add up the rent collected (after a vacancy allowance), subtract operating costs such as property tax, insurance, HOA dues, maintenance, management and capital expenditure reserves, then subtract the monthly mortgage payment. What remains is monthly cash flow.
What is a good cash flow for a rental property?
There is no universal figure. Some investors look for a set dollar amount per unit per month, others focus on cash-on-cash return or a comfortable cushion above break-even. Whatever your target, it should hold up after vacancy, maintenance and capex reserves, and this is general information rather than advice.
What is DSCR and why is it shown?
Debt service coverage ratio is net operating income divided by the loan payment. A value above 1.0 means the property's income covers its mortgage. Lenders of investment-property loans often set minimums, which vary, so check with yours.
What is break-even rent?
It is the monthly rent at which your cash flow after all expenses and the mortgage is exactly zero. This calculator accounts for the fact that vacancy, management, maintenance and capex are percentages of rent collected.
Does this include property tax and insurance in the mortgage payment?
No. The mortgage payment is principal and interest only. Enter property tax and insurance in their own monthly fields, even if your lender collects them in an escrow payment.
Why is my cash flow lower than listings say?
Listings and online estimates often leave out vacancy, maintenance, management and capital expenditure reserves. Including them gives a lower, more conservative figure.
Related rental property calculators
- Rental Property ROI Calculator — the hub: cash flow, cash-on-cash, cap rate, total ROI and the 1% rule in one place.
- Cash-on-Cash Return Calculator — annual cash flow divided by the cash you actually invested.
- Cap Rate Calculator — net operating income divided by price, independent of financing.
- 1% Rule Calculator — a 10-second screen of rent against price.
- Airbnb vs Long-Term Rental Calculator — compare short-stay income to a standard lease.
- Rental Income & Expense Spreadsheet and Rental Property Expense Tracker — track the real numbers once you own the property.
Want the full system, not just this one number?
This calculator screens one deal at a time. The Rental Property Manager Toolkit tracks rent, expenses, tenants, and maintenance across up to 8 properties, with a dashboard that shows real cash flow and net income as they actually happen — not just projected at purchase.
One-time purchase. No subscription.
Not ready to buy? Grab the free income & expense tracker (Excel, no signup) to log rent and costs, or read about the free tracker here.
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