Rental Cash Flow Calculator guide
Cash flow shows what remains after vacancy, recurring operating costs and debt service. Use conservative assumptions and compare the result with actual property records before relying on the estimate.
Cash flow versus NOI
NOI measures the property before financing. Cash flow subtracts debt service and therefore changes with loan amount, interest rate and amortization. Two owners can have the same property NOI but different cash flow because their financing differs.
Build a realistic expense estimate
Include taxes, insurance, management, repairs, recurring utilities, HOA charges, landscaping and a reserve for future replacements. A property can appear profitable when large but predictable costs are omitted.
Stress-test the property
Run the calculator again with lower rent, higher vacancy, higher insurance and a repair allowance. A deal that works only under perfect assumptions may have little margin for error.