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Rental property cash flow calculator

Most cash-flow arithmetic is optimistic because it leaves out the money that has not been spent yet. This one funds vacancy, maintenance and capex first, then tells you what is left.

Why the reserves come out first

A roof does not cost nothing for eighteen years and then $14,000. It costs about $65 a month for eighteen years, and you find out in month 216. A unit that is only positive when the reserve lines are blank is a unit that will hand you a bill you have not funded.

LineTypical bandWhat sets it
Vacancy4–8%Your turnover rate and days to re-let
Maintenance5–10%Age of the building and quality of the last rehab
Capex5–10%Remaining life of roof, HVAC, water heater
Management0–10%Zero only while you genuinely do the work

Management at zero is a wage you are not paying yourself

If the unit only clears with your own labour uncounted, put a real number in the management field and see whether it still clears. That is the number that matters when you buy the second one.

Cash flow, NOI and cap rate are three different questions

  • Cash flow is what lands in your account this month, after the mortgage.
  • NOI is what the building earns before financing — the number a buyer compares.
  • Cap rate is NOI over price; it prices the building, not your loan.

Take the same inputs into the cap rate calculator and the cash-on-cash return calculator and you get the three answers a buyer, a lender and you each care about.

Feeding the vacancy number honestly

Vacancy is not a percentage you pick; it is your own turnover rate times your own days-to-let. If you turn one unit every two years and re-let in 24 days, that is roughly 3.3% — but the turnover cost calculator will show you the make-ready sitting behind it, which is the larger number and belongs in capex, not vacancy.

Engraved rental house above two ledger columns