Rental Income Calculator
How much will your rental property actually earn? Calculate monthly cash flow after all expenses, review your annual NOI and cash-on-cash return, or project 5 years of growing income. Works with any currency.
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How to Use This Calculator
Tab "Monthly Cash Flow"
Enter your gross monthly rent, vacancy rate, property management percentage, mortgage payment, insurance, property tax, maintenance, and HOA fees. The calculator shows your net monthly cash flow after all expenses and your NOI (net operating income) before mortgage.
Tab "Annual Summary"
Uses the same property inputs plus your total cash invested (down payment + closing costs + rehab). Shows annual gross rent, all annual deductions, NOI, annual cash flow after mortgage, and your cash-on-cash return and cap rate.
Tab "5-Year Projection"
Enter rent growth rate and expense growth rate to see how your cash flow changes over 5 years. Mortgage stays fixed while rent and expenses grow at your specified rates. The table shows effective rent, operating expenses, mortgage, and net cash flow for each year.
The Formulas
EGI = Monthly Rent × 12 × (1 - Vacancy%)
Operating expenses (annual):
OpEx = (Management% × EGI) + Insurance + Tax + Maintenance + HOA
Net operating income:
NOI = EGI - OpEx
Annual cash flow:
Cash Flow = NOI - Annual Mortgage Payments
Cash-on-cash return:
CoC = Annual Cash Flow / Total Cash Invested
Year N projection:
Rent grows at rent_growth% compounding. Expenses (except mortgage) grow at expense_growth% compounding. Mortgage is fixed.
All calculations are universal and pre-tax. No depreciation, tax deductions, or country-specific rules are applied. Results are estimates.
Worked Examples
Example 1 — Single-family rental: $2,000/mo rent, $1,200/mo mortgage
An investor rents a single-family home for $2,000 per month with a $1,200 mortgage payment and standard expenses.
This property barely breaks even on cash flow. The investor may still benefit from mortgage paydown, appreciation, and tax deductions.
Example 2 — Cash-on-cash return: $60K invested, $2,400 annual cash flow
An investor put $60,000 into a rental property (down payment + closing costs) and earns $2,400 per year after all expenses and mortgage.
A 4% cash-on-cash return is modest. Many investors target 8-12%. This property may still be worthwhile if appreciation and equity buildup are factored in.
Example 3 — 5-year projection: 3% rent growth, 2% expense growth
Starting with $48/month cash flow in Year 1, how does it change over 5 years with 3% rent growth and 2% expense growth?
The fixed mortgage is the key driver: as rent grows, more of each dollar flows to the bottom line. Year 5 cash flow is over 5x Year 1.
Understanding Rental Income
What Is Net Operating Income (NOI)?
NOI is your property's income after all operating expenses but before mortgage payments. It measures how well the property performs regardless of how it's financed. NOI is the standard metric used to compare rental properties and calculate cap rates.
Cash Flow vs NOI
Cash flow is what you actually pocket each month — it's NOI minus your mortgage payment. A property can have positive NOI but negative cash flow if the mortgage is large. Cash flow is the number that matters for your monthly budget; NOI is the number that matters for comparing properties.
Why Vacancy Rate Matters
Even in hot markets, budget at least 5% vacancy. This covers time between tenants, lease-up periods, and occasional non-payment. Underestimating vacancy is one of the most common mistakes new landlords make. In markets with high turnover or seasonal demand, use 8-15%.
The Power of Fixed-Rate Mortgages
With a fixed-rate mortgage, your largest expense stays constant while rent grows over time. This is why rental property cash flow tends to improve year over year. A property that barely breaks even in Year 1 can produce strong cash flow by Year 5 as rent compounds but the mortgage stays flat.
Cash-on-Cash Return
Cash-on-cash return measures your annual cash flow as a percentage of the cash you invested. It is the most practical return metric for leveraged real estate because it reflects what your actual dollars earn. A 10% CoC means you earn $10,000 per year on a $100,000 investment. Target 8-12% for solid returns.