Rental Property Cash Flow Calculator

How To Regulate Rental Property Cash Flow?

Using your property to generate rent can be a great way to make some extra cash on additional money. But, it also entails keeping account of a lot of expenditures and investments. On top of that, calculating the amount you need to pay on your mortgage on your property can be daunting. Maintaining these records, specifically in percentages, can be confusing. But we present a calculator that can help you understand it correctly, so you don’t spend a single penny more unnecessarily,

Several other credits are to be calculated, like the fixed-rate mortgage calculator or the credit card payment calculator. For a full list of all our financial calculators, visit our Calculators page.

Let us dive into how rental property cash flow calculators helps you keep track of your rental income.

Basic Inputs Of Earning And Maintenance

The calculator expects you to enter basic information about the values of your rental properties, and they are as follows.

Number Of Rental Properties

As the name suggests, it is the number of properties you own. The assumption is that all the properties are similar, with the same average cost for each.

Average Monthly Rent

Assuming that all your properties provide a similar rent, this will be the average rent that you raise from each property.

% Vacancy And Credit Losses

When a rental property is vacant due to personal reasons or the time delay between tenants moving out and moving in, you will incur losses, and this calculates those losses.

Other Monthly Income

To ensure that the calculator can be comprehensive to understanding how much rental income contributes to your overall monthly income, giving in your other monthly income helps us calculate the total contribution.

Housing Expenditure

Owning a property generates earnings from rents. But there are expenses like mortgage and any property requires maintenance. They include the property management fees that are to be used to pay to the county, the cost of repairs and maintenance. It also includes taxes on a rental property, insurance on the property in case of any accidents, and payments to the homeowner’s association. There’s an optional reserve for replacement of utilities in the property, along with the payments for the utilities, pest control, and pay for legal and accounting help.

Inputs Of Mortgage

While the parameters listed above relate to your earnings of the property and expenditure in maintenance, the main reason for investing in real estate is for its value in the market.

Actual Purchase Price

This amount is the actual money spent on buying the property. You can consider it the cost of the investment property.

Desired Capitalization Rate

The capitalization rate is the rate of return that the real estate investment property produces based on the income it provides every year. The desired capitalization rate is the value that you try to meet to ensure that the investment is still profitable. For instance, if the expected rate is 8% and the initial cost is $100,000, you expect it to rise to $108,000 after one year.

Down Payment

The down payment is the initial amount of money that you pay towards the mortgage on the property. It is usually a large sum of money, contributing to a significant part of the mortgage. It contributes directly to the principal amount and does not count to the interest.

Loan Amount

This amount is the principal amount that you take out for the mortgage. Usually, the loan amount is often only for the property cost itself, but some people also use it for additional expenses like utilities. This value majorly decides how much money you will lose out concerning loans.

Acquisition Costs And Loan Fees

Usually, buying a property has additional expenses on the loan side, like registration, expenses of availing the loan, and so on. These expenses are not covered in the mortgage and must come out of your pocket, and the calculator helps you keep track of this.

Length And Rate Of Loan

As the name suggests, it is the duration for which you have taken the mortgage, and the rate is the interest rate, which adds the percentage on the original principal amount, which you will be paying as interest.

What Does The Calculator Give You?

There are two ways in which the calculator returns values. Firstly, there are smaller sum totals, percentage calculations that appear on the input section of the calculator itself when you press calculate. Some calculations give you final totals that are outside the parameter box.

Inside The Parameter Box

Total Rental Income

This amount is the total of the income that you will directly receive as rent. It is the product of the number of units and the average revenue per unit. If you have five units that have a rent of $5000 per unit, you will earn $25000 for that month. Note that this is a monthly rental column.

Total Vacancy Loss

This amount is what you lose when the property happens to be vacant during shifting. It is the product of the total rental income and the vacancy loss rate. If your rental income is $25000, and the rate is 1%, the vacancy loss is $250.

Gross Monthly Income

This income is the average you make from your rental properties, excluding the vacancy loss but including the other monthly income. If you make $25000 as rent, lose $250 due to vacancy and make $500 apart from rent, the gross income is $25000-$250+$500, which is $25250.

Total Annual Operating Income

As the name suggests, this is the income that you make off your rental property after deducting maintenance and legal costs for the year. So, it deducts utilities, maintenance, taxes, and all the miscellaneous expenses. However, it also includes the other monthly incomes that you might have.

Property Valuation

Based on the income that you made over the past few years from rental property, the property is evaluated on how much money it generates over the years and gets multiplied by the number of properties you own to give you the property valuation. This valuation is a normalized figure, and the calculations is taken care of by the calculator itself.

Actual Capitalization Rate

Opposed to the desired rate, this is the actual rate of capitalization that your property provides in comparison to its cost price. It is usually a simple percentage calculation of the property valuation and the initial price.

Outside the Parameter Box

Total Monthly Cash Flow

After taking into account all your incomes, expenditure on various maintenance charges, taxes, paying your monthly mortgage, and so on, the total monthly cash flow is the actual exact amount of money that you make every month through rentals and continue to retain.

Total Annual Cash Flow

The total annual cash flow is quite simple. It is just the total monthly cash flow multiplied by the total number of months in a year to provide the amount that you gain to stand in a year.

Monthly Mortgage Payment.

This calculation is a simple one of the annual interest rate on the total principal. It multiplies the principal with the interest rate and divides it by 12. This money is the exact amount you owe the lender for your property mortgage.

Cash On Cash Return

The cash on cash return is the percentage that assumes that annual income through the course of the mortgage remains the same. In that case, you multiple the total annual cash flow with the number of years of the mortgage to find the numerator. The actual initial price of the property becomes the denominator. Now, the Cash on Cash Return is simply the above-calculated fraction minus one, assuming there have been no returns. Note that this value can also be a negative number.


Making the right choices with your rental properties is essential. Any improper maintenance or any lack of maintaining an account can exponentially affect your investments, and you will continue to lose out on significant chunks of money due to tiny errors. Utilize our calculator to determine the right amount you pay your mortgages on time, and your income from rental properties flourishes.