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Rental Property Cash Flow Calculator

Determine your potential monthly and yearly net income from a rental investment.

1. Monthly Income

(Laundry, parking, storage, etc.)
(Typically 5-10%)

2. Monthly Expenses

Understanding Your Rental Property Cash Flow

For real estate investors, "cash flow" is king. It represents the net amount of cash moving into or out of a business, project, or financial product at a specific time. In rental real estate, positive cash flow means your property's income exceeds its expenses, providing you with passive monthly income and a financial safety net.

Negative cash flow occurs when your expenses (mortgage, taxes, repairs) exceed the rent you collect. While some investors accept negative cash flow in hopes of high future appreciation, it is generally considered a riskier strategy. Our Rental Property Cash Flow Calculator helps you evaluate a potential deal to ensure it meets your income goals before you commit.

Key Inputs Explained

  • Gross Monthly Rent: The total amount you charge tenants per month before any deductions.
  • Vacancy Rate: No property is occupied 100% of the time. It is crucial to budget for periods where the property sits empty between tenants. A standard conservative estimate is 5% to 10% of gross rent.
  • Effective Gross Income: This is your actual estimated income after accounting for vacancy losses. It's the realistic pile of money you have available to pay bills.
  • Operating Expenses: These are necessary costs to keep the property running, such as taxes, insurance, HOA fees, property management, and ongoing maintenance. Note that mortgage principal and interest are technically "debt service," not operating expenses, but they must be subtracted to find your final net cash flow.

Example Calculation Scenario

Let's look at a realistic example of how a rental property might perform using this calculator:

  • You buy a duplex and rent both units for a total Gross Rent of $2,800/month.
  • You assume a 5% Vacancy Rate ($140/month loss). Your Effective Income is $2,660.
  • Your total monthly expenses, including a $1,300 mortgage, $350 taxes, $100 insurance, and budgeting $250 for maintenance, come to $2,000/month in Total Expenses.

In this scenario, your Net Monthly Cash Flow would be $2,660 (Income) – $2,000 (Expenses) = $660 per month, or $7,920 per year in passive income.

Use the calculator above with your specific numbers to see if your prospective investment property will be a cash cow or a money pit.

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