Rental Property Cash Flow Calculator
Calculate monthly and annual cash flow after mortgage, expenses, and vacancy. Enter your numbers below — results update in real time.
Property Details
% of purchase price
Annual mortgage rate
Typically 15 or 30 years
HOA, insurance, management
% of time property is empty
Results
Monthly Mortgage
$1,596.73
Monthly Cash Flow
$3.27
Annual Cash Flow
$39.29
Cash-on-Cash Return
0.07%
Total ROI
0.07%
How to Calculate Rental Property Cash Flow
Cash flow is the net money you receive each month after paying all property-related expenses, including your mortgage.
Monthly Cash Flow Formula
Effective Rent − Monthly Expenses − Monthly Mortgage = Cash Flow
Effective Rent = Monthly Rent × (1 − Vacancy Rate)
Example: ($2,000 × 0.95) − $300 − $1,200 = $400/month
Always use effective rent (rent adjusted for vacancy) rather than asking rent. A 5% vacancy allowance is a conservative and commonly used rule of thumb.
Cash-on-Cash Return vs. Cap Rate
| Metric | Includes financing | Best used for |
|---|---|---|
| Cash-on-Cash Return | Yes — after mortgage | Comparing leveraged deals |
| Cap Rate | No — unleveraged NOI | Comparing properties independently of financing |
| Gross Yield | No — gross rent only | Quick market-level screening |
What Is a Good Cash-on-Cash Return?
- > 10% — Excellent. Strong cash-generating property relative to the equity deployed.
- 8–10% — Very good. Beats most alternative investments on a cash basis.
- 4–8% — Decent. Common in high-cost markets. May be justified with strong appreciation.
- < 4% — Low. You are likely relying on appreciation, not income, to make the investment work.
Frequently Asked Questions
- What is cash flow in rental property investing?
- Cash flow is the money remaining each month after collecting rent and paying all expenses — mortgage, insurance, property management, HOA, and vacancy allowance. Positive cash flow means the property earns more than it costs to hold.
- What is a good monthly cash flow for a rental property?
- Many investors target at least $100–$200 per unit per month in net cash flow. However, the absolute number matters less than the cash-on-cash return relative to your down payment. A $300/month cash flow on a $30,000 investment is excellent; the same number on a $200,000 down payment is very weak.
- What is cash-on-cash return?
- Cash-on-cash return (CoC) is your annual pre-tax cash flow divided by the total cash you invested (typically the down payment plus closing costs). A CoC of 8% or more is generally considered strong for a leveraged rental property.
- How does vacancy rate affect cash flow?
- Vacancy reduces your effective rent. A 5% vacancy rate means the property sits empty for roughly 18 days per year. Always factor in vacancy — even in tight rental markets, tenant turnover and unit preparation create some downtime.
- Should I include principal paydown in cash flow?
- Standard cash flow analysis does not include principal paydown — it only considers cash in vs. cash out. Principal paydown builds equity but is not money in your pocket today. It is better treated as a separate component of total return alongside appreciation and tax benefits.