Housing & moving · 302

Rental property cash flow

What monthly cash flow remains after rent, vacancy, finance, and property costs?

Your numbers

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Quick answer

What does the Rental property cash flow calculate?

What monthly cash flow remains after rent, vacancy, finance, and property costs? This calculator uses monthly rent, vacancy and non-payment allowance, monthly mortgage payment, monthly operating costs and reserve, and cash invested upfront to estimate rental cash flow immediately in your browser.

With the values currently entered, the result is $286.00estimated monthly cash flow. It also shows collected rent after vacancy, annual cash flow, and cash-on-cash return.

How to use the Rental property cash flow

  1. Replace the example values with your own numbers.
  2. Review the result and supporting figures as they update automatically.
  3. Check the formula and assumptions before using the estimate for a decision.

Inputs used

  • Monthly rent
  • Vacancy and non-payment allowance — entered in %
  • Monthly mortgage payment
  • Monthly operating costs and reserve
  • Cash invested upfront

Rental property cash flow formula

Rent × (1 − vacancy rate) − mortgage payment − operating costs

Assumptions

  • Operating costs include the maintenance and capital reserve you choose.
  • Appreciation, sale costs, income tax, and financing changes are excluded.

Practical guide

Rental property cash flow example and edge cases

What monthly cash flow remains after rent, vacancy, finance, and property costs? Let's use a concrete example, then look at the assumptions that can move the answer.

Example: A practical rental property cash flow scenario

For this example, use monthly rent of 2,400, vacancy and non-payment allowance of 6 %, monthly mortgage payment of 1,350, monthly operating costs and reserve of 620, and cash invested upfront of 90,000. These are starting values, so replace them with numbers that match your situation.

Monthly rent
2,400
Vacancy and non-payment allowance
6 %
Monthly mortgage payment
1,350
Monthly operating costs and reserve
620
Cash invested upfront
90,000

Calculated result$286.00estimated monthly cash flow

Start with estimated monthly cash flow. Then check collected rent after vacancy, annual cash flow, and cash-on-cash return to understand what sits behind the main result.

Example results use the default display profile. The calculator above follows your selected country and units.

How to read the result

  • Read the main result first. The supporting figures for collected rent after vacancy, annual cash flow, and cash-on-cash return explain how the estimate is built.
  • The method is Rent × (1 − vacancy rate) − mortgage payment − operating costs. Keep the units consistent and use values from the same time period.

Edge cases worth checking

When monthly rent is unusual

Operating costs include the maintenance and capital reserve you choose. Double-check this input before relying on the result.

When cash invested upfront is uncertain

Appreciation, sale costs, income tax, and financing changes are excluded. Run a lower and higher value to see a useful range.

What changes the result most

Monthly rent

Use a current amount for monthly rent. Include fees or recurring costs that belong in the same figure.

Vacancy and non-payment allowance

Test a lower and higher vacancy and non-payment allowance. A small percentage change can move the final result more than expected.

Monthly mortgage payment

Use a current amount for monthly mortgage payment. Include fees or recurring costs that belong in the same figure.

Try a different scenario

Small changes show whether the answer is stable or sensitive.

Monthly rent: 10% lower

2,160

$60.40estimated monthly cash flow

Monthly rent: 10% higher

2,640

$511.60estimated monthly cash flow

Vacancy and non-payment allowance: 10% higher

7 %

$262.00estimated monthly cash flow

Common mistakes

Check monthly rent

Operating costs include the maintenance and capital reserve you choose. Make sure this matches the number you enter.

Keep cash invested upfront consistent

Appreciation, sale costs, income tax, and financing changes are excluded. Use the same units and time period throughout the calculation.

Do not rely on one rental property cash flow scenario

Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.

Use this result well

Use it for

What monthly cash flow remains after rent, vacancy, finance, and property costs?

Do not use it as

It cannot replace a lender quote, lease, survey, or purchase contract.