Home  /  Free Tools  /  Rental Cash Flow Calculator
Free Calculator

Rental Cash Flow Calculator

A rental lives or dies on one number: what is left every month after every cost is paid — not the rent, not the landlord's brochure math. Enter the full picture and this calculator returns monthly cash flow, net operating income, cap rate, and cash-on-cash return from the same inputs.

$
$
%
%
Advanced — closing, holding & deal costs
$
$
%
%
%
%
$
$
$
Monthly Cash Flow
$18
After the mortgage and every operating expense. Thin is a verdict, not an error — see the walkthrough.
Monthly mortgage (P&I)$798
Net Operating Income (yearly)$9,798
Cap rate6.53%
Cash-on-cash return0.66%
Email me this breakdown + the Cash-Flow Worksheet
Check your inbox — your breakdown and the Cash-Flow Worksheet are on their way.
Free shelf: save up to 5 reports in this browser. Calculators are always unlimited and ungated.
Written by Alberto Molina · Numbers checked by Kyle SowellLast updated: October 2026How we run the numbers →

Walkthrough — a real example, run through this tool

A $150,000 rental asking $1,450/month — run honestly. 20% down at 7% for 30 years makes the mortgage $798/month. Gross rent after a 5% vacancy allowance: $1,378. Operating expenses — taxes, insurance, maintenance, an 8% manager, capital reserves — take $562 of it. What survives: $18 a month, a 6.53% cap rate, 0.66% cash-on-cash. That is not a broken calculator; that is a deal that barely works at this price and rate. Drop the price to $130,000 in the tool and watch cash flow jump past $150/month — price is the lever, hope is not.

How to use this calculator

Step 1. Enter the Purchase Price you would actually pay — not the list price you wish existed.

Step 2. Enter the Monthly Rent the property can really collect (check it with the Rent Estimator).

Step 3. Set your Down Payment, Interest Rate, and Loan Term — these build the mortgage payment.

Step 4. Open Advanced and enter taxes, insurance, vacancy, maintenance, management, capital reserves, HOA, and closing costs. Skipping a line does not delete the cost; it deletes your accuracy.

Step 5. Read Monthly Cash Flow first, then cap rate and cash-on-cash to compare this deal against the next one.

The numbers behind it

Mortgage (P&I): standard amortization on Loan = Price × (1 − Down%), monthly rate = annual rate ÷ 12, over Term × 12 payments.

Effective Gross Income (monthly) = Rent × (1 − Vacancy%).

Operating Expenses (monthly) = Taxes÷12 + Insurance÷12 + Rent × (Maintenance% + Management% + Capital Reserves%) + Other + HOA. Operating expenses exclude the mortgage — that separation is what makes NOI useful.

NOI (yearly) = (Effective Gross Income − Operating Expenses) × 12. Monthly Cash Flow = (NOI − 12 × Mortgage) ÷ 12. Cap Rate = NOI ÷ Purchase Price. Cash-on-Cash = (Cash Flow × 12) ÷ (Down Payment + Closing Costs).

Explanation of terminology

NOI. Net Operating Income — yearly income after operating expenses, before the mortgage. The number cap rate is built from. Full definition →
Cap rate. NOI divided by price — the return if you paid cash. Used to compare properties on one scale. Full definition →
Cash-on-cash return. Yearly cash flow divided by the cash you actually put in (down payment + closing costs). Full definition →
PITI. Principal, Interest, Taxes, Insurance — the four pieces of a full monthly housing payment. Full definition →
1% rule. A first screen: monthly rent should be near 1% of the purchase price. A screen, not a verdict — this calculator is the verdict. Full definition →

Must reads

Frequently asked questions

What cash flow should a rental have?

There is no universal number — it depends on your market, reserves, and goals. What is universal: run it with every expense line filled. A deal that only works with vacancy and maintenance set to zero does not work.

Why is my cash flow negative when rent is higher than the mortgage?

Because rent also pays taxes, insurance, vacancy, repairs, management, and reserves. Rent minus mortgage is a brochure number; rent minus everything is cash flow.

Does cash flow include the mortgage principal paydown?

No. Principal paydown builds equity, and appreciation may come — both are real, neither pays this month's bills. Cash flow is the cash number only.

What vacancy rate should I use?

5% is a common planning allowance (about 18 days a year). Use your market's real vacancy if you know it — and never zero.

More tools

State law & data pages