Rental Property Cash Flow Calculator
Calculate monthly cash flow, annual cash-on-cash return, and GRM for rental properties. Includes mortgage, vacancy, property management, taxes, insurance, and maintenance.
Reviewed for accuracy by Marcus Webb and the Blueprint Dynamics editorial team (last updated July 2026). Our calculators use primary-source formulas and are cross-checked against IRS publications, Fannie Mae guidelines, and Federal Reserve data. Learn more about our methodology.
Monthly Cash Flow
-$103
Cash-on-Cash Return
-2.46%
Annual Cash Flow
-$1,231
Mortgage/mo
$1,331
GRM
10.4x
How rental property cash flow is calculated
Rental property cash flow is net operating income (NOI) minus your debt service (mortgage payment). NOI = gross rental income − vacancy loss − all operating expenses. Operating expenses include property management, property taxes, insurance, maintenance, capital expenditure reserves, and any utilities paid by the landlord. The mortgage payment (principal + interest) is not an operating expense — it's your debt service, subtracted after NOI to arrive at cash flow.
Expense categories every investor must model
Vacancy rate: most markets run 5–10% vacancy (1 month empty per year = 8.3%). Do not assume 100% occupancy. Property management: if self-managing, budget your time at a realistic hourly rate; if hiring a manager, expect 8–12% of collected rents plus lease-up fees of one month's rent per new tenant. Maintenance and repairs: budget 5–10% of gross rents annually for ongoing repairs — more for older properties. Capital expenditure (CapEx) reserves: budget 5–10% of gross rents for eventual large replacements — roof ($8,000–$15,000), HVAC ($5,000–$10,000), water heater ($1,200–$2,000), flooring, appliances. Failing to reserve for CapEx turns what looks like a profitable rental into a cash flow disaster when the roof needs replacing.
What experienced investors target
Most experienced residential rental investors target $100–$200 positive cash flow per unit per month after all expenses including mortgage — a cash-on-cash return of 6–10% on invested capital. In high-cost markets (Los Angeles, New York, Seattle), achieving even break-even cash flow is difficult; investors in these markets accept thin or negative cash flow in exchange for strong appreciation potential. In secondary and tertiary markets (Midwest, Southeast), cash flow targets of $300–$500+/unit are achievable with correct property selection.
Cash-on-cash return vs. total return
Cash-on-cash return = annual cash flow / total cash invested (down payment + closing costs + initial repairs). It measures the income yield on your out-of-pocket capital. A property generating $3,600/year in cash flow on $45,000 invested produces an 8% cash-on-cash return. Total return also includes principal paydown (your tenants' rent paying down your mortgage balance), appreciation in property value, and tax benefits (depreciation deduction). When all four components are included, real estate investors in positive-cash-flow markets often achieve 15–25% annualized total returns on invested capital in favorable conditions.
Worked example
Purchase price: $220,000. Down payment: 25% ($55,000). Loan: $165,000 at 7%, 30 years. Monthly P&I: $1,098. Monthly rent: $1,800. Vacancy (8%): −$144. Property management (10%): −$166. Taxes + insurance: −$350. Maintenance (6%): −$108. CapEx reserve (7%): −$126. Total monthly operating expenses: −$894. NOI: $906. Subtract mortgage: −$1,098. Cash flow: −$192/month. This property looks like it breaks even from rent vs. mortgage, but actually loses $192/month after proper expense modeling — a common miscalculation for new investors who skip vacancy and CapEx reserves.