FINANCIAL · RENTAL PROPERTY CASH FLOW
Rental Property Cash Flow Calculator
Calculate monthly and annual rental property cash flow, NOI, and cash-on-cash return. Enter rent, vacancy, purchase price, financing, and operating expenses for a complete landlord analysis.
About This Calculator
Will this rental property put cash in your pocket each month? Enter the rent, vacancy rate, financing details, and all operating expenses to see your monthly and annual cash flow, NOI (Net Operating Income), and cash-on-cash return. The answer is right there on the screen.
How It Works
The calculator starts with gross monthly rent, applies a vacancy factor to get effective rent, then subtracts all monthly operating expenses (property tax, insurance, maintenance, management, HOA, and other) to compute the monthly NOI. The mortgage payment (computed automatically from the loan amount, rate, and term using the standard amortization formula) is then subtracted from NOI to get monthly cash flow. Cash-on-cash return annualizes the cash flow and divides by total cash invested (down payment + closing costs + rehab).
The Formula
Monthly Cash Flow = Effective Rent − Operating Expenses − Mortgage (P&I)
- Effective Rent
- Monthly rent adjusted for vacancy (rent × (1 − vacancy%))
- Operating Expenses
- Property tax/12 + insurance/12 + maintenance/12 + management + HOA + other
- NOI
- Net Operating Income — effective rent minus operating expenses (no mortgage)
Frequently Asked Questions
- What is the difference between NOI and cash flow?
- NOI (Net Operating Income) measures the property's income minus operating expenses, but it excludes your mortgage payment. This is an unlevered metric that tells you how profitable the property is regardless of how you financed it. Cash flow takes one more step — it subtracts the monthly principal and interest (P&I) payment. Positive cash flow means the property pays for itself and then some; negative cash flow means you're supplementing from pocket each month.
- Why include closing costs and rehab in the investment?
- Cash-on-cash return measures the actual return on every dollar you put into the deal. If you bought a property for $300,000 with $60,000 down, plus $5,000 closing and $10,000 in repairs before renting it, your real investment is $75,000 — not $60,000. Using the full cash invested gives you the most accurate picture of your returns.
- What is a good cash-on-cash return?
- Industry benchmarks vary widely by market and risk tolerance. Many real estate investors target 8–12% cash-on-cash as a baseline. Sub-5% may indicate the property is priced for appreciation rather than income. Above 15% is possible in high-cash-flow markets but often comes with higher risk (lower-income neighborhoods, older properties). Compare to the local market and your own cost of capital.
- Why is my cash flow negative?
- A negative cash flow means the mortgage and expenses exceed the rent (an "alligator" property — it eats at you). This is common with high purchase prices, high leverage, or interest rates relative to rent. It doesn't automatically make the investment bad — appreciation may compensate — but you need reserves. The calculator always shows the accurate number.
- Should I include property management even if I self-manage?
- Many investors include a property management line (typically 8–10% of rent) even when self-managing, because it gives a more conservative analysis and represents the opportunity cost of your time. If you want to see the self-managed numbers, set the monthly management field to $0.