Free Investor Tool
Rental Property Cash Flow Calculator
Monthly cash flow after the costs beginners forget — vacancy, maintenance, management — plus cap rate and cash-on-cash.
Your numbers
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% of rent — set 0 if self-managing
Results
Monthly principal & interest
$2,047$300,000 loan after 25% down
Operating expenses / mo
$1,133Taxes, insurance, HOA, vacancy, maintenance, management
Net operating income / mo
$1,867Monthly cash flow
-$180NOI minus mortgage payment
Cap rate
5.6%Cash-on-cash return
-2.0%On $108,000 invested (down + closing)
Negative cash flow — the rent doesn't cover costs at these assumptions. Test a larger down payment or a better purchase price.
How this works. Cash flow is rent minus operating expenses (taxes, insurance, HOA, plus vacancy, maintenance, and management as percentages of rent) minus the mortgage payment. Cap rate uses NOI before financing, so it compares properties; cash-on-cash divides annual cash flow by your down payment plus closing costs, so it compares uses of your cash. Principal paydown and appreciation are upside on top of these numbers.
FAQ
- What is a good cash-on-cash return on a rental?
- Many buy-and-hold investors target 6–10% cash-on-cash in today's rate environment, though the right number depends on appreciation prospects, rent growth, and how much of the return comes from principal paydown. Negative cash flow isn't automatically a bad deal, but it should be a deliberate bet on growth, not a surprise.
- What's the difference between cap rate and cash-on-cash return?
- Cap rate is the property's net operating income divided by its price — it ignores financing entirely and measures the asset. Cash-on-cash divides your actual annual cash flow (after the mortgage) by the cash you invested — it measures your position, including leverage. Use cap rate to compare properties, cash-on-cash to compare uses of your money.
- How much should I budget for vacancy and maintenance?
- Common starting points are 5–8% of rent for vacancy and 5–10% for maintenance, adjusted for property age and tenant profile. Property management typically runs 8–10% of collected rent. Underwriting at zero for these lines is the most common way new investors talk themselves into a bad deal.
- Can I finance a rental based on its cash flow instead of my income?
- Yes — that's what DSCR loans are for. The lender qualifies the property on its rent covering the payment rather than your personal debt-to-income ratio. If this calculator shows solid cash flow, run the same numbers through our DSCR calculator to see how a lender would view it.