What vacancy and maintenance rates should I use?

Many investors budget 5% for vacancy and 5% to 10% for maintenance and capital repairs, more for older buildings. Property management in California commonly runs 6% to 10% of collected rent, plus leasing fees.

Is negative cash flow ever acceptable?

Some investors accept thin or negative cash flow in appreciating markets and count on principal paydown and growth. It carries real risk, though, because every month comes out of your reserves, so it pays to know the number before you buy.

Why is my cash flow different from the DSCR?

DSCR lenders typically divide gross rent by the full payment of principal, interest, taxes, insurance and HOA, and ignore vacancy, management and maintenance. Your real cash flow subtracts those costs, so it is usually tighter than the ratio suggests.

All calculators · Investors and self-employed

Rental Property Cash Flow Calculator

See what a rental actually leaves you each month. Vacancy, management, maintenance and fixed costs come out of the rent first, the mortgage comes out of what remains, and the bar shows where every rent dollar goes.

Monthly cash flow

$173

$2,073 a year after the mortgage, on $4,800 in monthly rent.

Mortgage (P&I)62%
Property tax12%
Insurance3%
Management8%
Maintenance5%
Vacancy5%
Other2%
Cash flow4%

Scheduled rent: $4,800
Collected after vacancy: $4,560
Operating expenses: $1,403
Net operating income (NOI): $3,157
Debt service (P&I): $2,985
Monthly cash flow: $173
Annual cash flow: $2,073
Loan amount: $437,500
Cap rate: 6.06%
DSCR (rent ÷ PITIA): 1.29
Break-even rent: $4,590

The property clears its costs by $173 a month; rent could fall to about $4,590 before cash flow turns negative.

Check my DSCR options (949) 774-9599

Estimates for illustration only, not a loan offer or a commitment to lend. Rates, taxes, insurance and program rules vary; our team will confirm exact figures for your situation.

How this calculator works.

Vacancy is taken off the scheduled rent to get the rent you actually collect. Property management is charged on collected rent, which is how most managers bill, and maintenance is set aside as a share of the full scheduled rent.

Net operating income (NOI) is collected rent minus every operating cost: management, maintenance, property tax, insurance, HOA and any other monthly cost. It excludes the mortgage, so it describes the property, not the financing.

Debt service is the principal and interest payment on the loan. Cash flow is NOI minus debt service, shown monthly and for the year, alongside the cap rate and the debt service coverage ratio a DSCR lender would calculate.

Cash flow = (rent − vacancy) − operating expenses − principal and interest. NOI excludes principal and interest.

Common questions.

Turn the estimateinto real numbers.

Answer a few questions and our team will price your scenario with current rates and the right program.

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