How to Use the Rental Cash Flow Calculator
Enter the property price, monthly rent, other income, vacancy rate, operating expenses, down payment, interest rate, and loan term. Realtolic automatically estimates effective gross income, operating expenses, net operating income (NOI), mortgage payments, monthly cash flow, annual cash flow, and cash flow margin.
Rental Cash Flow Calculator Example
For example, suppose a $350,000 rental property earns $3,000 per month with a 5% vacancy rate. After estimated operating expenses, the property produces approximately $23,664 in annual NOI. With a 25% down payment and a $262,500 mortgage at 6.5% for 30 years, annual debt service is about $19,910. The estimated cash flow is approximately $3,754 per year, or $313 per month.
How Is Rental Property Cash Flow Calculated?
Rental property cash flow is the money remaining after operating expenses and mortgage payments are deducted from property income. A simple formula is: Cash Flow = Effective Rental Income − Operating Expenses − Debt Payments.
See our complete guide to calculating rental property cash flow for a step-by-step example.
What Expenses Should You Include?
Common expenses include property taxes, insurance, maintenance and repairs, property management fees, HOA fees, owner-paid utilities, vacancy losses, other recurring operating expenses, and mortgage payments when calculating final cash flow.
What Is Positive Rental Cash Flow?
Positive cash flow means the property's estimated income is greater than its operating expenses and debt payments. Negative cash flow means estimated expenses and debt payments are greater than the income generated by the property.
Rental Cash Flow Calculator FAQs
Does vacancy affect rental cash flow?
Yes. Higher vacancy reduces collected rental income and can lower cash flow.
Can rental cash flow be negative?
Yes. Cash flow can be negative when expenses and debt payments exceed property income.
Is NOI the same as cash flow?
No. NOI is calculated before mortgage payments, while cash flow generally accounts for debt payments.
Does a larger down payment affect cash flow?
Yes. A larger down payment can reduce the loan amount and mortgage payment, which may increase monthly cash flow, although it requires more cash upfront.
