Rental Cashflow Calculator
See whether a rental actually cash flows before you fall in love with it. Enter the price, rent, and expenses to get monthly cashflow, cash-on-cash return, cap rate, and DSCR. Nothing is saved, and there is no email wall.
This property loses money each month at these numbers. Adjust the price, rent, or costs to see what it would take to break even.
Annual cashflow divided by the cash you put in (down payment plus closing costs).
Annual NOI divided by purchase price. Ignores financing.
Annual NOI divided by annual mortgage payments. Lenders often want 1.20 or higher.
Rent after the vacancy allowance.
Effective rent minus operating expenses, before the mortgage.
Down payment plus closing costs.
Estimates only, for education. Vacancy is netted from rent; maintenance, CapEx, and management are percent-of-rent reserves. Confirm every figure with a lender and the actual property before you offer.
What the numbers mean
Monthly cashflow is what the property puts in your pocket after the mortgage, operating costs, and reserves. If it is negative, the deal loses money at these numbers, and it is telling you to adjust the price, the rent, or your assumptions.
Cash-on-cash return divides your annual cashflow by the cash you put in. It is the number that tells you how hard your actual dollars are working. Cap rate ignores financing and measures the property on its own, and DSCR is what many lenders check before they approve an investment loan.
The reserves matter. Netting vacancy from rent and holding back maintenance and CapEx is what separates a real number from an optimistic one. For how much cushion to keep on top, see how much cash reserves to keep. Thinking about house hacking instead? Use the house hacking calculator, and find where the math works in the best cities for house hacking.
Rental cashflow questions
How do you calculate rental property cashflow?
Cashflow is your effective rent (rent minus a vacancy allowance) minus operating expenses (taxes, insurance, maintenance, CapEx, management, utilities) minus the mortgage payment. What is left over each month is your cashflow. This calculator does the full math for you.
What is a good cash-on-cash return on a rental?
Cash-on-cash return is your annual cashflow divided by the cash you invested (down payment plus closing costs). Many investors look for somewhere in the 6% to 10% range on a long-term rental, but the right target depends on your market, your goals, and how much appreciation you expect.
What is the difference between cap rate and cash-on-cash?
Cap rate is net operating income divided by purchase price and ignores your financing, so it measures the property itself. Cash-on-cash divides annual cashflow by the actual cash you put in, so it reflects your loan. This calculator shows both.
Should I include vacancy and reserves in my numbers?
Yes. Skipping vacancy, maintenance, and CapEx is the most common way beginners overstate cashflow. This calculator nets vacancy from rent and holds back maintenance and CapEx as a percent of rent, so the result reflects what you will actually keep over time.
Ready to run your first real deal?
The 28-day course walks through analyzing and buying your first rental, in order. Or grab the free strategy guide to find the path that fits you.