Rental Cash Flow Calculator
Calculate monthly and annual cash flow for any rental property with itemized income and expenses.
What is Good Rental Cash Flow?
The $100–$200 per Unit Rule of Thumb
Many investors target a minimum of $100–$200 positive cash flow per unit per month after all expenses including mortgage, vacancy, maintenance, and reserves. This provides a buffer for unexpected costs without putting the property in the red.
Why Vacancy Rate Matters
A 5% vacancy rate is a common default, representing roughly 18 days of vacancy per year per unit. In tight rental markets it may be lower; in seasonal or rural markets it can exceed 10%. Always model vacancy even when your current property is fully occupied.
Capital Expenditure (CapEx) Reserves
CapEx reserves cover large infrequent expenses: roof replacement, HVAC, water heater, flooring. A common rule is to budget 5–10% of monthly rent for CapEx. Skipping this makes cash flow look better on paper but hides future costs.
Cash Flow vs. Total Return
Cash flow is only part of the investment picture. Appreciation, loan paydown (equity build), and tax advantages also contribute to total return. Some markets offer low cash flow but strong appreciation; others offer high cash flow with slower price growth. Know which you are investing for.
Property Management Impact
Professional property managers typically charge 8–12% of collected rent. This turns time costs into a dollar cost and often makes the numbers tighter — but it also makes the investment more passive. Model with and without management to understand your options.