Rental cash flow calculator
Turn scheduled rent into the cash the property can actually leave behind. Model vacancy, recurring operating expenses, full mortgage payments, and a separate reserve for larger capital work.
Operating expenses include tax, insurance, management, routine maintenance, utilities, and service charges. Keep capital work in the separate reserve.
€21,660 effective income − €5,000 operating expenses − €12,000 debt service − €1,200 reserve
Break-even occupancy is the share of scheduled income needed to cover operating expenses, debt service, and the capital reserve.
Estimates only, for general guidance. Use one currency throughout. Tax, depreciation, financing changes, and irregular costs may alter actual cash flow.
How to use it
- 1Enter rent, other recurring income, and a realistic vacancy allowance.
- 2Add annual operating expenses, full mortgage payments, and a capital reserve.
- 3Review monthly cash flow and rerun the model with higher vacancy or costs.
How to use the result
Do not confuse NOI with cash flow
NOI stops after operating expenses and deliberately excludes financing. Spendable cash flow goes further by subtracting the full mortgage payment and any capital reserve, so it can be lower even when the property reports a healthy NOI.
Give vacancy and capital work a seat
A fully occupied year with no major work is rarely a safe base case. Test a realistic vacancy allowance and reserve money for roofs, systems, appliances, or other infrequent costs before treating the monthly result as distributable income.
Guides and workflows for the result
Use the calculation as a starting point, then examine the assumptions and carry the result into the matching PropFlow workflow.
Questions
- What is rental property cash flow?
- It is the rental income left after vacancy, operating expenses, mortgage principal and interest, and any capital reserve. Positive cash flow adds money to the owner; negative cash flow requires funding from elsewhere.
- Why is cash flow different from NOI?
- NOI measures property operations before financing and capital expenditure. Cash flow subtracts the full debt payment and capital reserve after NOI, because both reduce the cash available to the owner.
- What should I include in operating expenses?
- Include recurring property costs such as tax, insurance, management, routine repairs, owner-paid utilities, service charges, and landscaping. Keep mortgage payments and infrequent capital replacements separate.