Rental Property Cash Flow Calculator
Calculate monthly cash flow, cap rate, cash-on-cash return, and DSCR for any rental property — free, no signup required.
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How to Use This Calculator
Enter your purchase price, financing terms, expected rent, and monthly expenses. The calculator updates in real time as you type, giving you monthly cash flow, cap rate, cash-on-cash return, DSCR, and NOI — the five metrics every rental investor needs to evaluate a deal.
The default values reflect a typical single-family rental. Adjust vacancy, maintenance, and CapEx to match your market and property condition.
What Is Rental Property Cash Flow?
Cash flow is the money left over each month after you've collected rent and paid every expense — mortgage, taxes, insurance, management, maintenance, and reserves. It's the most basic measure of whether a rental property is actually making you money.
The formula is simple: Cash Flow = Effective Gross Income − All Expenses − Mortgage Payment
Positive cash flow means the property is paying you. Negative cash flow means you're feeding the property out of pocket every month — which is acceptable in appreciating markets but unsustainable long-term for most investors.
What Is a Good Cash Flow for a Rental Property?
Most experienced investors target $100–$300/month per door as a minimum threshold, with $200+/month being a common benchmark for single-family rentals. In high-cost markets, cash flow is often thin or negative, and investors accept it for appreciation upside.
Rather than chasing a dollar amount, many investors use the 1% rule as a quick screen: if the monthly rent is at least 1% of the purchase price, the property is likely to cash flow. A $200,000 property should rent for at least $2,000/month to pass.
Cap Rate Explained
Cap rate (capitalization rate) measures a property's income potential independent of financing. It's calculated as NOI ÷ Purchase Price, expressed as a percentage.
- 4–5%: Typical for high-demand urban markets with strong appreciation
- 6–8%: A healthy range for most suburban rental markets
- 8%+: Common in smaller markets or higher-risk properties
Cap rate lets you compare properties regardless of how you finance them — useful when evaluating deals before deciding on your financing structure.
Cash-on-Cash Return
Cash-on-cash return measures your annual cash flow relative to the cash you actually invested (down payment + closing costs + rehab). It's a better measure of real-world performance than cap rate because it accounts for your financing.
The formula: Annual Cash Flow ÷ Total Cash Invested × 100
Most investors target 8–12%+ cash-on-cash return. Anything above 10% on a stabilized rental is considered strong in most markets.
DSCR — Debt Service Coverage Ratio
DSCR is the ratio of your property's NOI to its annual mortgage payment. Lenders use it to determine if a property generates enough income to cover its debt.
DSCR = NOI ÷ Annual Debt Service
- Below 1.0: Property doesn't cover its debt — most lenders won't approve
- 1.0–1.25: Breakeven range — some lenders accept this with strong borrower profile
- 1.25+: Most DSCR lenders require this minimum
- 1.5+: Comfortable cushion — easy to finance with most lenders
DSCR loans are popular with rental investors because they qualify based on property income rather than personal income — making them ideal for investors with multiple properties or self-employed income.
Gross Rent Multiplier (GRM)
GRM is a quick and rough valuation metric: Purchase Price ÷ Annual Gross Rent. A GRM of 10 means you're paying 10 years' worth of gross rent for the property.
Lower GRM = better deal on paper. Typical GRMs range from 8–15 depending on market. GRM doesn't account for expenses so it's best used as a first-pass screen, not a final decision tool.
The Expenses Most Investors Underestimate
Beginner investors often forget to account for all costs, leading to deals that look profitable on paper but lose money in practice. The most commonly underestimated expenses are:
- Vacancy: Even good properties sit empty between tenants. Use 5–8% as a baseline.
- CapEx reserves: Roofs, HVAC, appliances, and water heaters all eventually need replacing. Set aside 1–2% of property value per year.
- Maintenance: Budget 1% of property value per year for ongoing repairs, even on newer properties.
- Property management: Even if you self-manage now, underwriting management fees (8–10%) protects you if you scale.
Frequently Asked Questions
What's the difference between NOI and cash flow?
NOI (Net Operating Income) is your income after all operating expenses but before your mortgage payment. Cash flow subtracts the mortgage too. Lenders and appraisers use NOI; investors focused on returns use cash flow.
Should I include mortgage principal paydown in my returns?
Principal paydown builds equity but isn't cash in your pocket — it's a paper return. Most investors calculate cash-on-cash return based on cash flow only, then add equity buildup and appreciation as additional return components when evaluating total return on investment.
Is negative cash flow ever acceptable?
It depends on your strategy. In high-appreciation markets like coastal cities, investors often accept flat or slightly negative cash flow betting on long-term appreciation. If you're building a cash-flowing portfolio for income replacement, negative cash flow properties will limit how fast you can scale.
What's a good cap rate in today's market?
In 2024–2025, rising interest rates compressed cash flow on many properties. In most suburban markets, 6–8% cap rates are reasonable targets. Anything below 5% is hard to make work with conventional financing at current rates.
Can I use this for multi-family properties?
Yes — enter combined rent from all units as your monthly rent. Adjust vacancy and management percentages accordingly. For larger multi-family (5+ units), you may also want to factor in separate utilities, trash, landscaping, and higher management costs.
How is this different from the FlipIQ deal analyzer?
FlipIQ's main analyzer is built for fix-and-flip deals — it calculates flip profit, ROI, deal score, and generates a lender-ready PDF for hard money lenders. This cash flow calculator is for buy-and-hold rental analysis. Many BRRRR investors use both: flip calculator to evaluate the rehab phase, cash flow calculator to evaluate the long-term hold.