Calculator · Buy and hold

Rental cash flow calculator

Enter a rental's price, loan and expenses to see year-one NOI, cash flow, cap rate, cash-on-cash return and DSCR. Results update as you type.

Results (year 1)

Updates as you type. The formulas are under "How this is calculated" below.

Monthly cash flow
Annual cash flow
Cap rate
Cash-on-cash return
DSCR
Break-even rent (per month)

Income and expenses

Gross potential rent
Less vacancy
Effective gross income
Operating expenses
NOI
Debt service (P&I x 12)

Financing

Loan amount
Monthly P&I
Cash invested

How to use this calculator

Enter the purchase price, closing costs and any repairs or reserves you will pay up front.
Set your down payment, interest rate and loan term. Use 100% down to see an all-cash deal.
Enter the total monthly rent for all units and a vacancy allowance.
Fill in operating expenses: property tax, insurance, repairs, CapEx, management, HOA and owner-paid utilities.
Read the results panel. Change any input and the numbers update right away.

Worked example

Say you are looking at a $450,000 rental that brings in $4,600 a month, with 25% down at 6.75% over 30 years (the values loaded in the calculator above).

Gross rent is $55,200 a year. After 5% vacancy, effective gross income is $52,440.

Operating expenses come to $18,265, so NOI is $34,175.

The loan is $337,500 and the monthly principal and interest is $2,189.02, or $26,268 a year.

Cash flow is $7,907 a year, about $659 a month, on $131,000 of cash invested.

That gives a cap rate of 7.59%, a cash-on-cash return of 6.04% and a DSCR of 1.30x.

How this is calculated

Gross potential rent = monthly rent x 12. Effective gross income (EGI) = gross rent - vacancy.
Operating expenses = price x tax rate + insurance + gross rent x (repairs % + CapEx %) + EGI x management % + (HOA + utilities) x 12.
NOI = EGI - operating expenses (before the mortgage).
Loan = price x (1 - down %). Monthly P&I uses the standard amortizing payment: P x r / (1 - (1 + r)^-n) with r = rate / 12 and n = years x 12.
Cash flow = NOI - P&I x 12
Cash invested = down payment + closing costs + upfront repairs.
Break-even rent = (tax + insurance + HOA x 12 + utilities x 12 + P&I x 12) / (12 x ((1 - vacancy) x (1 - management) - repairs - CapEx)) is the monthly rent where year-one cash flow is $0.
Cap rate = NOI / price Cash-on-cash = cash flow / cash invested DSCR = NOI / debt service

Year one only, before income tax. Rents and costs change over time.

Frequently asked questions

What is a good cash flow for a rental property?

There is no single number. Many investors want cash flow that stays positive after vacancy, repairs and a CapEx reserve, and some set a minimum such as a few hundred dollars per door. The right target depends on your goals, your market and how much risk you are willing to take.

How is rental cash flow calculated?

Start with rent, subtract vacancy to get effective gross income, then subtract operating expenses to get NOI. Cash flow is NOI minus the mortgage payments for the year. This page shows each step.

Does this include income tax or depreciation?

No. The calculator shows year-one results before income tax. Rents, expenses and loan balances change over time, so a longer projection would differ. Ask a qualified tax professional about taxes.

What vacancy and repair rates should I use?

They vary by market, property type and condition. Many investors use 5 to 8 percent for vacancy and set aside a percentage of rent for repairs and CapEx. Local property managers and your own history are better guides than a rule of thumb.