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Rental property cash flow

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

Your numbers

$
%
$
$

Monthly cash flow

$161

Effective rent$2,491.00
Annual cash flow$1,932

Tip. Stress-test higher vacancy and higher repairs before you buy, not after.

Assumptions

  • Effective rent = gross × (1 − vacancy%).
  • Cash flow = effective rent − mortgage − operating costs.

Explore the numbers

Examples and charts

Start with a scenario, then read the response curve to see which input actually moves the answer.

Example 1

Optimistic underwriting

Low vacancy and lean operating costs, which is how most deals get talked into.

Monthly cash flow

$421

Example 2

Realistic underwriting

A vacancy allowance and operating costs closer to what landlords actually report.

Monthly cash flow

$161

Example 3

Bad year

A longer void plus higher repairs, which is the case that has to survive.

Monthly cash flow

-$268

Sweeps vacancy / credit loss from half to one and a half times your value, holding everything else fixed.

Response curve

How vacancy / credit loss moves the result

Monthly cash flow

$161

$80.00$100$120$140$160$180$200$220$2404.0%6.0%8.0%
Chart axis: Vacancy / credit lossNow 6.0% → $161

What this calculates

Estimates monthly cash flow after vacancy, financing, and operating costs. It is the landlord's reality check, and the vacancy field is where optimistic underwriting usually goes wrong.

How to use it

  1. Start with gross monthly rent and work down the form, or load an example to begin from a realistic case.
  2. Read the headline result alongside the supporting rows, which show the intermediate figures behind it.
  3. Check the assumptions. They decide what the number includes and, more importantly, what it leaves out.
  4. Sweep vacancy / credit loss on the response curve to see how much it actually moves the answer.
  5. Run a cautious case as well as an optimistic one before using the estimate in a decision.

Common mistakes

  • Underwriting at zero vacancy forever.
  • Leaving out a capital expenditure reserve for roofs, systems, and appliances.
  • Excluding management fees because you plan to self-manage, which prices in your unpaid labour.

Formula

Cash flow = gross rent × (1 − vacancy%) − mortgage − operating costs

Inputs

  • Gross monthly rent
  • Vacancy / credit loss (%)
  • Mortgage payment
  • Taxes, insurance, maint, mgmt

FAQ

What goes in operating costs?

Everything recurring except the mortgage: property tax, insurance, maintenance, management fees, HOA dues, and any utilities you cover.

What vacancy rate should I use?

5 to 8% is a common planning range, which is roughly two to four weeks a year. One turnover with a month of void and a clean-up blows through a 3% assumption immediately.

Is positive cash flow enough to call it a good deal?

Not on its own. Cash flow ignores capital expenditure like roofs and boilers, which arrive rarely and cost a lot. Many properties that show positive cash flow are negative once those are reserved for.

Does this account for depreciation or tax?

No. This is pre-tax cash flow. Depreciation can materially improve the after-tax picture in the US, and it is recaptured on sale, so it belongs in a fuller analysis.

Are these numbers financial advice?

No. They are educational estimates based on the inputs and assumptions on this page. Confirm important decisions with a qualified professional and your own documents.

Read the full guideRental property cash flow guide

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