Rental Property Cash Flow Calculator
Calculates monthly cash flow for a rental property after mortgage, taxes, insurance, and a maintenance reserve. Ideal for landlords evaluating whether a rental deal generates positive income.
About this calculator
Monthly cash flow is the amount of money left over from rental income after all recurring expenses are paid. The formula used here is: Cash Flow = Monthly Rent − Mortgage Payment − Property Taxes − Insurance − (Monthly Rent × Maintenance Reserve Rate). The maintenance reserve is expressed as a decimal (e.g., 0.05 for 5%) and represents a percentage of rent set aside each month for future repairs. This approach captures both fixed costs (mortgage, taxes, insurance) and variable costs that scale with the property's rental income. Positive cash flow means the property is self-sustaining; negative cash flow means you must subsidize it from other income. Annualized cash flow is simply this monthly figure multiplied by 12.
How to use
A duplex rents for $2,200/month. The mortgage payment is $1,100, property taxes are $200/month, insurance is $100/month, and you set aside a 5% maintenance reserve. Step 1: Maintenance reserve = $2,200 × 0.05 = $110. Step 2: Total expenses = $1,100 + $200 + $100 + $110 = $1,510. Step 3: Cash Flow = $2,200 − $1,510 = $690/month. Annualized: $690 × 12 = $8,280/year. Enter your figures to see your property's cash flow immediately.
Frequently asked questions
What maintenance reserve rate should I use for a rental property cash flow calculation?
Most experienced landlords budget 5–10% of monthly rent for maintenance and repairs. Newer properties in good condition may justify 5%, while older homes or those with aging systems (roof, HVAC, plumbing) often warrant 8–10%. Some investors use the 50% Rule as a rough guide — total expenses including maintenance typically consume about half of gross rent. Setting your reserve too low leads to surprise cash shortfalls; setting it too high makes viable deals look unattractive. A 7% reserve is a reasonable starting point for most single-family rentals.
How does a rental property cash flow calculator differ from a profit and loss statement?
A cash flow calculator focuses on actual money moving in and out each month — the liquidity picture. A profit and loss (P&L) statement includes non-cash items like depreciation, which reduces taxable income but does not require a cash outlay. Cash flow also omits capital expenditures (a new roof, for example) unless explicitly included, whereas a full P&L might amortize those costs. For day-to-day investment decisions, cash flow is more actionable; for tax planning, the P&L with depreciation is essential. Savvy investors track both simultaneously.
What monthly cash flow per unit is considered good for a rental property?
Many investors target at least $100–$200 of positive cash flow per unit per month as a minimum threshold. However, in high-cost markets with strong appreciation, investors may accept lower or even slightly negative monthly cash flow in exchange for long-term equity growth. The cash-on-cash return (annual cash flow divided by total cash invested) is a more meaningful benchmark — many investors target 6–10%. A property cash flowing $500/month on a $60,000 down payment yields a 10% cash-on-cash return, which is generally considered strong by most standards.