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Rental Property Cash Flow Calculator

Run a rental the way a lender and a seasoned investor would: real expenses, vacancy, reserves and debt service, not just rent minus mortgage.

Purchase & loan
$
%
%
years
$
$
Income
$
$
Parking, laundry, storage
%
Share of the year the unit sits empty
Expenses
$
$
$
$
%
Percent of rent
%
Roof, HVAC, appliances; percent of rent
%
Percent of rent; enter 0 if self-managing
Monthly cash flow
 
After all expenses and the mortgage
Cap rate
 
Cash-on-cash
 
DSCR
 
Rent-to-price
 
Cash needed to close
Loan amount
Mortgage payment (P&I)
Effective income / mo
Operating expenses / mo
Net operating income / yr
Annual cash flow

How this calculator works

It builds the deal from the top down: income, then operating expenses, then debt. Keeping those layers separate is what lets you compare properties fairly.

Effective income = (rent + other income) × (1 − vacancy) Operating expenses = taxes/12 + insurance/12 + HOA + utilities + rent × (maintenance + reserves + management) NOI (annual) = (effective income − operating expenses) × 12 Cash flow = effective income − operating expenses − mortgage P&I

Cap rate

NOI divided by purchase price. It ignores financing, so it shows what the property itself earns. Use it to compare buildings, not to judge your personal return.

Cash-on-cash return

Annual cash flow divided by the cash you put in (down payment, closing costs and upfront repairs). This is your return on the money that left your account.

DSCR

Debt service coverage ratio: NOI divided by annual mortgage payments. Above 1.0 the property covers its own debt. Commercial and portfolio lenders often want 1.20 to 1.25.

Rent-to-price (the 1% rule)

Monthly rent as a share of price. The old "1% rule" says rent should be at least 1% of price. In high-cost markets almost nothing passes, so treat it as a quick screen, not a verdict.

Frequently asked questions

What is a good cash-on-cash return for a rental?

Many investors look for 8% to 12%, but the right number depends on your market, the property's condition and how much appreciation you expect. A lower return can make sense in a strong-appreciation area; a weak area should pay you more.

Why include maintenance and capital reserves if nothing is broken?

Because things will break. Roofs, water heaters and HVAC systems wear out on a schedule. Setting aside a percentage of rent every month spreads those costs out so one repair does not erase a year of cash flow.

What is the difference between cap rate and cash-on-cash return?

Cap rate ignores financing and measures the property. Cash-on-cash includes your mortgage and measures your return on cash invested. The same building has one cap rate but a different cash-on-cash return for every buyer.

Should I include property management if I manage it myself?

Consider leaving it in. Your time has value, and if you ever hand the property to a manager the deal still has to work. You can set it to 0% to see the self-managed result.

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Results are estimates based on the numbers you enter and simplified assumptions. They are not financial, tax, lending or legal advice. Confirm figures with your lender, accountant, attorney or the relevant county before you commit money.