Cash flow
Rental property cash flow calculator
Cash flow is the money left each month after every expense and the mortgage payment. Positive cash flow pays you to own the property; negative cash flow means you are funding it out of pocket.
Monthly cash flow
Rent − Vacancy − Operating expenses − Mortgage payment (P&I)
Example: $2,400 rent − $120 vacancy − $780 expenses − $1,250 mortgage = $250/month
Expenses investors commonly underestimate
Vacancy (often 5–8% of rent), repairs and maintenance (5–10%), capital expenditures for roofs, HVAC, and appliances (5–10%), and property management (8–10% of collected rent) are the line items that most often turn a 'cash flowing' property negative on paper.
Property taxes can also reset higher after a sale, so use the post-purchase assessed value where possible rather than the seller's current bill.
Cash flow vs. profit
Cash flow ignores appreciation and loan paydown, which also build wealth. That's why investors pair cash flow with cash-on-cash return and total ROI to see the full picture.
How Envestor helps
- Itemized expenses with sensible defaults you can override
- Live rent estimates so income isn't a guess
- Monthly and annual cash flow alongside cap rate and cash-on-cash return
- Save scenarios and compare properties on the same assumptions
Free account includes a property analysis. No credit card required.
Frequently asked questions
- What is good cash flow on a rental property?
- Many investors target $100–$300 per door per month after all expenses and reserves, but the right number depends on your market, price point, and goals. Always include vacancy and capital expenditure reserves.
- Does cash flow include the mortgage?
- Yes. Cash flow subtracts the full principal-and-interest payment. Net operating income (NOI), used for cap rate, does not.