Free cash flow calculator
Cash Flow Calculator for Rental Properties
Find out exactly how much a rental property will put in your pocket — or cost you — each month. All expenses included, no hidden assumptions.
How cash flow is calculated
Cash flow = Gross rent − Vacancy − Operating expenses − Mortgage payment
Gross rent
$2,000/mo
Starting point
Vacancy (7%)
−$140/mo
Lost rent between tenants
Operating expenses
−$690/mo
Mgmt, maintenance, CapEx, taxes, insurance
Mortgage (25% dn)
−$988/mo
6.5% interest, 30 yr on $262,500
Net cash flow
$182/mo
On a $350,000 property
Annual cash flow
$2,184/yr
$182 × 12 months
Expenses the calculator accounts for
- Vacancy — A percentage of gross rent reserved for periods between tenants (typically 5–10%).
- Property management — Fees paid to a manager to find tenants and handle maintenance (typically 8–12%).
- Maintenance — Routine repairs and upkeep (typically 1–2% of property value annually).
- CapEx reserve — Savings for major capital expenditures like roofs, HVAC, and appliances (typically 1–2% annually).
- Property taxes — Annual taxes divided by 12.
- Landlord insurance — Annual premium divided by 12.
- Mortgage payment — Principal and interest based on your loan terms.
Frequently asked questions
- What is cash flow in real estate?
- Cash flow is the money left over each month after collecting rent and paying all expenses — mortgage, taxes, insurance, vacancy allowance, management fees, maintenance, and capital expenditure reserves. Positive cash flow means the property generates income; negative means it costs you money each month.
- What expenses reduce rental property cash flow?
- Vacancy (lost rent between tenants), property management fees (8–12% of rent), maintenance (1–2% of property value annually), CapEx reserves for major repairs, property taxes, landlord insurance, and your mortgage payment (principal + interest).
- Is negative cash flow ever acceptable?
- In some high-appreciation markets, investors accept negative cash flow because they expect equity growth to offset the monthly loss. This is a calculated bet — use DealPrism to model how much appreciation you would need to break even over your holding period.
- How do I improve cash flow on a rental property?
- Increase rent (if market supports it), reduce vacancy by retaining good tenants, negotiate a lower purchase price, put more money down to reduce your mortgage, or buy in a higher-yield market. DealPrism lets you model each scenario instantly.
- What is a good monthly cash flow per rental unit?
- Many investors target $100–$300 per unit per month as a minimum threshold, though this varies by market and property price. Per-unit cash flow should be evaluated alongside cash-on-cash return to compare deals of different sizes.
- Does cash flow include principal paydown?
- No — monthly cash flow only counts actual cash in and out. Principal paydown builds equity but is not cash you receive. DealPrism shows cash flow separately from total return (which includes equity buildup and appreciation).
Calculate cash flow for your deal
Enter your numbers and see estimated monthly cash flow in seconds. Free to use, no account required.
Analyze your own deal — freeResults are based on user-entered assumptions. Values may vary by property, location, and market conditions. Review all assumptions before making investment decisions.