Rental Property Cash Flow Calculator
Analyze a rental property's monthly cash flow, cash-on-cash return, and cap rate by plugging in your purchase terms, rent, and operating expenses.
About this calculator
This calculator gives you a full income-and-expense picture of a rental property investment. It computes the monthly mortgage payment from your purchase price, down payment, and loan terms, then factors in rent, vacancy loss, and all operating expenses to arrive at monthly net cash flow. Cash-on-Cash Return measures annual cash flow as a percentage of your total cash invested (the down payment). Cap Rate shows NOI relative to the purchase price, independent of financing. Cumulative projections show total cash flow over 5 and 10 years assuming no rent growth or appreciation — a conservative baseline.
Field explanations
- Purchase price
- The total acquisition cost of the property. The loan amount and cap rate are both calculated relative to this figure.
- Down payment
- Your upfront cash investment as a percentage of the purchase price. This is the denominator in the cash-on-cash return calculation.
- Interest rate
- Annual mortgage interest rate on the investment property loan. Investment property rates are typically 0.5–1% higher than primary residence rates.
- Loan term
- A 30-year term lowers the monthly payment and improves near-term cash flow; a 15-year term reduces total interest paid and builds equity faster.
- Monthly rent
- Expected monthly rental income at full occupancy. Research comparable rentals in the area to set a realistic figure.
- Vacancy rate
- The percentage of time the property is expected to be unoccupied. A common default is 5–8% (roughly 3–4 weeks per year). Vacancy loss is subtracted from gross rent before expenses are applied.
- Property taxes
- Annual property tax bill. Check your county assessor's website or the property listing for the current amount.
- Insurance
- Annual landlord insurance premium. Typically higher than a homeowner's policy — budget $800–$2,000/year for a single-family rental, depending on location and coverage.
- Maintenance reserve
- Annual budget for repairs and upkeep. A common rule of thumb is 1% of the property value per year (e.g. $3,500/yr on a $350,000 property).
- Property management fee
- The percentage of effective gross income charged by a property manager. Typically 8–12% for residential properties. Enter 0 if you are self-managing.