Rental Property Cash Flow Calculator

How this calculator works

Cash flow is what is left after every operating cost, money set aside for big repairs, and the loan payment. Net operating income (NOI) stops before reserves and loan payments, which is why it is used for cap rates and commercial DSCR.

Keep the lines separate and you can see exactly where the rent goes.

NOI = rent − vacancy − operating expenses (taxes, insurance, HOA, management, maintenance, utilities, other).
Cash flow = NOI − capital reserves − debt service.
Cash-on-cash = yearly cash flow ÷ cash invested (down payment, closing costs and initial repairs).

Worked example

Example values are illustrative, not quotes or market data. These are the numbers the calculator above starts with.

Inputs

Purchase price: $250,000
Down payment: $62,500 (25%)
Interest rate: 7.25%
Loan length: 30 years
Closing costs: $6,000
Initial repairs: $0
Monthly rent: $2,100
Vacancy and credit loss: 5%
Property taxes per year: $5,200
Insurance per year: $1,900
HOA per month: $0
Management (% of collected rent): 8%
Repairs and maintenance (% of rent): 5%
Capital reserves (% of rent): 5%

Results

Monthly cash flow: -$245
NOI: $13,665
Cap rate: 5.47%
Cash-on-cash: -4.3%
DSCR: 0.89
Cash invested: $68,500

Common questions

What is a good cap rate?

There is no single answer; it depends on the property, location and risk. Compare against recent sales of similar rentals.

Should I include management if I manage myself?

Many investors do, because your time has a cost and you may hire a manager later.

How much should I set aside for repairs?

It depends on the age and condition of the home. The example percents are illustrative.

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Estimate only. Actual loan terms, eligibility, insurance, taxes, and settlement charges require verification. These are planning estimates, not a lender Loan Estimate, Closing Disclosure, appraisal, or approval. Michael O'Neal is a real estate broker, not a lender, appraiser, attorney or tax adviser.