Rental Property Cash Flow Calculator
Estimate monthly cash flow, cap rate, cash-on-cash return, and DSCR before you buy.
How do I calculate rental property cash flow?
Rental cash flow = Effective Gross Income (gross rent minus vacancy) minus operating expenses (tax, insurance, HOA, management, maintenance, CapEx, utilities) minus annual debt service (P&I payments). Lenders judge a deal on DSCR (NOI ÷ debt service ≥ 1.25). Investors judge it on cash-on-cash return (annual cash flow ÷ total cash invested).
- Target 8%+ cash-on-cash return for long-term rentals
- DSCR of 1.25+ qualifies for most rental loans
- Reserve at least 10% of gross rent for maintenance + CapEx
- Cap rate (NOI ÷ price) is for comparison, not financing decisions
Source:BiggerPockets, Investopedia rental analysis frameworks
Cash flow on paper and cash flow in your bank account are two different numbers. Most first-time landlords budget for mortgage and taxes, then get blindsided by vacancy, capex, and the IRS treatment of repairs vs. improvements.
Real-world scenario
Duplex bought for $380K, $2,800/mo total rent
Gross monthly rent: $2,800. Mortgage (P&I): $1,650. Taxes + insurance: $480. Property management 8%: $224. Vacancy reserve 5%: $140. Maintenance reserve 5%: $140. Capex reserve 5%: $140. True monthly cash flow: $26. Most landlords skip the reserves and 'make' $700/month — until the HVAC dies.
The part most people miss
The IRS distinguishes repairs (deductible now) from improvements (depreciated over 27.5 years). A new water heater = improvement. Replacing a broken faucet = repair. The de minimis safe harbor lets you expense items under $2,500 per invoice — election made annually on your return. Most CPAs forget to elect it; ask explicitly.
A property that 'cash flows on paper' often doesn't once you reserve for capital expenditures and turnover. This calculator forces realistic assumptions so the number you see is the number you'll actually clear at year-end.
Is my rental property actually cash-flowing?
Plug in your rent, expenses, mortgage, and total cash invested. A 'strong' verdict means 8%+ cash-on-cash AND 1.25+ DSCR. Marginal means positive but thin. Negative means you're losing money each year — fine if you're betting on appreciation, dangerous if you're not.
- •Cash flow = EGI − OpEx − debt service
- •Cap rate = NOI ÷ purchase price
- •DSCR = NOI ÷ annual debt service
- •Cash-on-cash = annual cash flow ÷ cash invested
Property Details
5–8% is typical for stable markets
Annual operating expenses
Variable expense rates
Financing
Return metrics
Down payment + closing + rehab
Enter property details and click Calculate to see your cash flow analysis.
Sources & References
Primary references used for this content
Residential Rental Property
The IRS's primary guide for landlords
View on irs.gov
Supplemental Income and Loss
Rental, royalty, partnership, and S-corp income
View on irs.gov
✓2 primary sources; links re-checked on a weekly rotation by the source watcher
Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.