Rental Property Cash Flow
Will this property turn a profit every month? Find out accurately.
How This Tool Works
Cash flow is the lifeblood of any rental portfolio. This calculator helps you determine your monthly "take-home" profit after accounting for ALL expenses—including the often-overlooked "phantom" costs like vacancy and CapEx savings.
Understanding the Components
- Income: Gross rent plus extra income (laundry, parking, storage).
- Fixed Expenses: Mortgage (P&I), Taxes, Insurance, HOA fees.
- Variable Expenses: Vacancy (money lost when unit is empty), Repairs, and Property Management fees.
- CapEx (Capital Expenditures): Savings fund for big ticket items (Roof, HVAC, Water Heater) that will eventually break.
Example Scenario
You collect $2,500 in rent. Your Mortgage + Tax + Insurance costs $1,800.
- "Paper" Profit: $700. Looks good, right?
- Reality Check:
- - $125 (5% Vacancy Fund)
- - $250 (10% Repair/CapEx Fund)
- Real Net Cash Flow: $700 - $375 = $325/mo.
This tool shows you the real $325, preventing you from overspending the $700 and running out of cash when a repair hits.
Frequently Asked Questions
What is a good cash flow per door?
Most investors aim for a minimum of $100-$200 in net cash flow per unit (door) per month. In more expensive markets, you might aim for $300+. Anything positive is technically 'profitable', but low cash flow leaves you vulnerable to big repairs.
How much should I budget for CapEx and repairs?
A standard conservative estimate is to set aside 10-15% of gross rent every month. Split this between routine maintenance (5-8%) and Capital Expenditures (CapEx) for major items like roofs and HVAC (5-8%).
What is the difference between NOI and Cash Flow?
NOI (Net Operating Income) is income minus operating expenses, but BEFORE mortgage payments. Cash Flow is what you actually keep after paying the mortgage (Debt Service). Cash Flow = NOI - Mortgage.