Rental Property Cash Flow Calculator
Calculate a rental's monthly cash flow, cash-on-cash return, and DSCR from rent, expenses, mortgage, and cash invested. Runs in your browser.
Taxes, insurance, mgmt, maintenance, vacancy.
Down payment + closing + rehab.
Rental returns
- Monthly cash flow
- $400
- Annual cash flow
- $4,800
- Cash-on-cash return
- 6.0%
- DSCR (NOI ÷ debt service)
- 1.31
Cash flow = rent − operating expenses − mortgage. Cash-on-cash = annual cash flow ÷ cash invested. DSCR = NOI ÷ annual debt service (lenders often want ≥ 1.20–1.25). Don't omit vacancy, maintenance, and capex reserves — optimistic expense estimates are the most common way rentals look better than they are. Informational, not investment advice.
About this tool
A rental property's viability comes down to three numbers, and this calculator produces all of them. Monthly cash flow is rent and other income minus operating expenses and the mortgage payment — the cash that actually hits your pocket each month, and it should be positive. Cash-on-cash return annualizes that cash flow against the total cash you invested (down payment, closing costs, and rehab), giving the yield on your actual out-of-pocket money. Debt-service coverage ratio (DSCR) is net operating income divided by annual debt service; lenders for investment loans typically want it at 1.20–1.25 or higher, meaning the property earns comfortably more than its loan payments. The most common way rentals look better on paper than in reality is understating expenses, so the tool prompts you to include taxes, insurance, management, maintenance, and — critically — vacancy and capital-expenditure reserves, not just the obvious bills. Run conservative numbers. It is informational, not investment advice. Everything runs in your browser.
How to use it
- Enter monthly rent (plus any other income).
- Enter monthly operating expenses — include vacancy and maintenance reserves.
- Enter the monthly mortgage payment (principal + interest).
- Enter total cash invested; read cash flow, cash-on-cash return, and DSCR.
Frequently asked questions
- What is cash-on-cash return?
- Annual pre-tax cash flow divided by the total cash you invested (down payment + closing costs + rehab). It measures the yield on your actual out-of-pocket money — unlike cap rate, it accounts for financing. Investors often target high single digits to low double digits, depending on market.
- What is DSCR and why do lenders care?
- Debt-service coverage ratio = net operating income ÷ annual debt service. It shows whether the property's income covers its loan payments. DSCR loans for investors commonly require ≥ 1.20–1.25, meaning income exceeds debt payments by 20–25%.
- What expenses should I include?
- Property taxes, insurance, property management (~8–10% of rent if you hire it out), maintenance and repairs, utilities you cover, and reserves for vacancy and capital expenditures (roof, HVAC). Leaving out vacancy and capex is the classic mistake that makes a deal look better than it is.
- What's the difference between cash flow and NOI?
- NOI is income minus operating expenses, before the mortgage — it drives cap rate and DSCR. Cash flow subtracts the mortgage too, so it is what you actually keep. A property can have positive NOI but negative cash flow if the loan payment is large.
- Why is my cash flow negative?
- Usually the mortgage payment plus realistic expenses exceed the rent — common with high prices, low rents, or small down payments. Options: larger down payment (lower payment), higher rent, lower-cost property, or accept it as an appreciation play (riskier).
- Is this investment advice?
- No. It is an informational analysis. Do thorough due diligence and consult professionals before buying.