Rental Property Cash Flow Calculator
Run the landlord numbers before you buy. Estimate monthly cash flow, real returns, break-even occupancy, and the 10-year outlook for any rental property.
Educational Disclaimer
Wyzfin calculators and guides are for educational and informational purposes only. They do not constitute financial, tax, or legal advice. The results provided are estimates based on user input and general assumptions. Every financial situation is unique; always consult with a qualified professional before making significant financial decisions.
Calculator Inputs
5% is a common baseline assumption for long-term rentals.
$292/month at the current property value.
Self-managed property
This property costs you $631/month - here is what needs to change to break even.
This property costs you $631/month - here is what needs to change to break even.
The S&P 500 averages 7-10% annually.
A cap rate above 5% is generally considered good in most markets.
Good based on purchase price divided by annual rent.
You need 126.6% occupancy to break even. Your vacancy assumption leaves -31.6pts of buffer.
Down payment plus estimated closing costs.
10-Year Projection
Cash flow, equity, and total returnKey Insight
Your property breaks even at about $2,665/month rent. You are currently $632 below break-even, so a rent increase or expense reduction of that amount would move it positive.
This rental property cash flow calculator answers whether your rental property is making money after vacancy, expenses, and financing. Enter rent, mortgage terms, taxes, insurance, maintenance, and management costs to calculate cap rate and cash on cash return with a 10-year projection. It is built for rental investors who want to underwrite a property before buying, refinancing, or raising rent.
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Rental Cash Flow Matters First
Cash flow is the money left after rent, vacancy, operating expenses, and mortgage payments. It is the first rental metric to check because it tells you whether the property can support itself month after month. Use the mortgage payment calculator to test financing assumptions and the rent vs buy break-even calculator to compare property ownership against other housing choices.
Appreciation can help over time, but monthly cash flow decides whether you need to keep feeding the property from your paycheck. A small positive number can still be fragile if vacancy or repairs run higher than expected.
Cap Rate vs. Cash-on-Cash Return
Cap rate looks at the property itself: net operating income divided by property value. It is useful for comparing properties without financing. Cash-on-cash return looks at your actual invested cash after debt service, so it is usually more relevant when you use a mortgage.
The 1% Rule Explained
The 1% rule says monthly rent should be at least 1% of the purchase price. A $350,000 property would need about $3,500 in monthly rent to pass. It is only a quick screen, not a full underwriting model, because it ignores taxes, rates, insurance, vacancy, and repairs.
Why Vacancy Is Often Underestimated
Vacancy is not just an empty month. Turnover can include cleaning, repairs, leasing time, and rent lost while finding the next tenant. Even a stable property should include a vacancy assumption so your return is not built on perfect occupancy.
How Management Fees Change the Math
Property management often costs a percentage of collected rent. That can be worthwhile if it saves time or improves tenant handling, but it directly reduces monthly cash flow and cash-on-cash return. Run both self-managed and managed scenarios before deciding, then compare the long-term equity path against the compound interest calculator.
Frequently Asked Questions
What is a good cash-on-cash return for rental property?
Many investors look for at least 8% cash-on-cash return, though the right target depends on financing, market risk, appreciation expectations, and how much work the property requires.
What is a good cap rate?
A cap rate above 5% is often considered solid in many rental markets, but lower cap rates can still make sense in areas with stronger appreciation or lower risk.
Should I self-manage or hire a property manager?
A property manager can reduce your workload, but the fee directly lowers cash flow. Compare the monthly fee against your time, distance from the property, tenant turnover, and maintenance complexity.
How do I calculate if a rental property is worth buying?
Start with rent, vacancy, operating expenses, mortgage payment, and cash invested. Then compare monthly cash flow, cash-on-cash return, cap rate, break-even occupancy, and the long-term equity projection.
What expenses do most landlords forget to include?
Commonly missed expenses include vacancy, repairs, capital reserves, property management, HOA fees, insurance increases, local taxes or rates, leasing costs, and small recurring fees.
Run the numbers before you buy — not after
Compare the rental return against your mortgage, budget, and long-term investing options.