Cash Flow Calculator
Calculate the monthly and annual net cash flow of a rental property by subtracting mortgage payments, taxes, insurance, maintenance, and HOA fees from rental income.
Calculation Results
Your estimated net profit or loss each month.
Your estimated net profit or loss each year.
How This Calculator Works
To analyze the monthly cash flow of a rental unit:
- Enter the total monthly gross rental income.
- Enter your monthly mortgage payment (Principal and Interest).
- List other monthly expenses: property taxes, landlord insurance, maintenance reserves, and any homeowners association (HOA) fees.
The calculator immediately outputs your net cash distributions on both a monthly and annual scale.
Formula & Calculations
Net cash flow is calculated by subtracting all monthly expenses (both debt payments and operating costs) from the monthly rental income:
Monthly Cash Flow = Monthly Rent - (Mortgage + Taxes + Insurance + Maintenance + HOA)
The annual cash flow is the monthly cash flow multiplied by 12:
Annual Cash Flow = Monthly Cash Flow × 12
Step-by-Step Calculation Examples
Positive Cash Flow Single-Family Home
Calculating cash flow for a rental home bringing in $2,200/month with a $1,200 mortgage and standard operating expenses.
- monthly_rent: 2200
- mortgage_payment: 1200
- taxes: 250
- insurance: 100
- maintenance: 150
- hoa_fees: 50
- monthly_cash_flow: $450.00
- annual_cash_flow: $5,400.00
Frequently Asked Questions
What is a healthy monthly cash flow for a rental property?
Generally, a net cash flow of $100 to $300 per month per door is considered healthy for a single-family home. Multifamily properties might have lower per-door targets but higher overall cash flows.
Why is a maintenance reserve input necessary?
Properties inevitably require repairs (e.g., roof leaks, broken appliances, plumbing issues) and experience periods of vacancy. Setting aside a regular monthly maintenance and vacancy reserve (typically 5% to 15% of the rent) ensures you remain profitable when issues arise.
Does positive cash flow mean the investment is good?
Not necessarily. A property can have positive cash flow but a very low cash-on-cash return if you had to put a massive down payment to keep the mortgage payment low. It is important to evaluate cash flow alongside ROI and Cap Rate.