Rental cash flow calculator: gross rent, vacancy, mortgage, taxes, insurance, maintenance, HOA → monthly/annual cash flow, cap rate, and expense ratio.
How it works
Landlord math starts with effective rent after vacancy, then subtracts operating costs and debt service—positive monthly cash flow is not the same as a good cap rate. Example: $2,400 gross rent with 5% vacancy → $2,280 effective; minus $1,650 mortgage, $280 tax, $95 insurance, $150 maintenance ≈ $105/month cash flow (~$1,260/year). NOI before mortgage drives cap rate on a $320,000 property—roughly 4–5% in this scenario.
Frequently asked questions
What is NOI vs cash flow?
Net operating income (NOI) is rent minus operating expenses—tax, insurance, maintenance, vacancy, HOA—but before mortgage payments. Cap rate uses NOI divided by property value. Cash flow subtracts the mortgage too; you can have decent NOI but negative cash flow if leverage is heavy.
What cap rate should I target?
Cap rates vary by market and asset class—primary markets may show 3–5%, secondary 6–8%+. Compare similar neighborhoods, not national averages. A higher cap rate often means higher risk, lower growth, or deferred maintenance; run vacancy at 8–10% to stress-test.
Should I include property management fees?
If you self-manage, add a realistic fee (8–10% of rent) to maintenance/HOA or mentally stress the numbers—your time has a cost, and vacancy repairs often spike when you are hands-off. Professional management belongs in operating expenses for apples-to-apples comparisons.