Calculator guide
Cash Flow Calculator
Monthly cash flow is the money left in your pocket each month after every expense and loan payment is covered. This guide shows exactly how it's calculated.
What the metric means
Monthly cash flow is the money left in your pocket each month after every expense and loan payment is covered. This guide shows exactly how it's calculated.
Formula
Where:
- Effective Gross Income
- Gross rent × (1 − vacancy rate)
- Operating Expenses
- Management, maintenance, CapEx reserves, taxes, and insurance
- Monthly Debt Service
- Principal and interest payment on the loan
Example:
- Effective gross income = $1,980/month
- Operating expenses = $780/month
- Monthly debt service = $960/month
- Step 1: Cash Flow = $1,980 − $780 − $960
- Step 2: Cash Flow = $240/month
After paying all expenses and the mortgage, this property generates $240/month in spendable income — under current assumptions.
How DealPrism uses it
DealPrism recalculates cash flow anytime rent, vacancy, taxes, insurance, financing, or operating reserves change so investors can pressure-test the same deal quickly.
Common mistakes
- Ignoring vacancy because the property is currently occupied.
- Treating maintenance and CapEx like optional expenses.
- Forgetting that higher leverage can turn a marginal deal negative.
Related FAQs
Analyze your own deal
See this metric in context with your purchase price, rent, expenses, and financing assumptions.
Analyze your own dealDealPrism provides educational analysis based on available data and user assumptions. Results are estimates and may change if rent, taxes, insurance, financing, or other inputs are updated. This content is not financial, legal, tax, or investment advice.