Rental Cash Flow Calculator
Compare rent against everything that comes out each month: vacancy, expenses, reserves and the loan payment.
Rental Cash Flow Calculator
Enter your numbers; the result appears here.
Have a question about your situation, want tips, or need a referral? Email the CLRC team at [email protected]. We share general information, not legal advice, and we’re not a law firm.
Monthly cash flow = effective income − operating expenses ÷ 12 − reserve − loan payment
Break-even rent = the rent at which cash flow equals $0
Debt service coverage = NOI ÷ annual loan payments
How to use it
Positive cash flow means the property pays for itself each month; negative means you are covering it from other income. A reserve line keeps repairs and big-ticket items (roof, HVAC, appliances) from surprising you. A debt service coverage ratio below 1.0 means the property’s income does not cover the loan payment.
Worked example
Rent $3,200, 5% vacancy, $12,500/year expenses ($1,042/month), 5% reserve and a $3,300 loan payment: effective income $3,040; reserve $152; cash flow = $3,040 − $1,042 − $152 − $3,300 = $-1,454/month ($-17,444/year).
Rent assumptions must respect the statewide rent cap and any local rent-control or just-cause rules. Use the free rent increase calculator and check your county page before you plan on a rent increase. Vacancy and turnover also depend on notice and deposit timing: see the notice date calculator and deposit calculator.
Frequently asked questions
How much should I reserve for repairs?
It depends on the age and condition of the property. Many owners set aside a percentage of rent or a fixed amount per month; use what fits your property.
Why separate “operating expenses” from the loan payment?
Operating expenses show what the property costs to run. The loan payment is a financing choice. Keeping them apart lets you compare properties and see how debt changes cash flow.
Sources
- Civ. Code § 1947.12 (statewide rent cap)
- California Attorney General: limits on rent increases
- California DRE: Landlord-Tenant guide
This tool applies general California rules to the dates you enter. It cannot see your lease, your city’s ordinance or the facts of your situation. Check your local rent rules and consult a qualified attorney before you serve a notice or withhold a deposit. Read the disclaimer.