Rental Property Cash Flow Calculator

Frequently asked questions

What is a good monthly cash flow result for a rental property?

Any positive monthly cash flow means the property is generating more income than it costs to hold, which is the baseline for a self-sustaining investment. A monthly cash flow of 10% to 20% of the gross monthly rent is considered healthy for a leveraged property. Cash flow above that level, or for unencumbered properties without a mortgage, provides a significant buffer against vacancy and unexpected maintenance.

How accurate is this cash flow calculator?

The calculator uses actual rent, vacancy, EMI, and expense inputs to produce a straightforward cash flow estimate. Real-world accuracy depends on how closely your vacancy rate and monthly expenses match the estimates used. Actual vacancy varies by market conditions and tenant quality, and maintenance expenses can spike in some months.

What does a negative monthly cash flow mean?

Negative monthly cash flow means the property costs more to hold each month than it earns in rent, requiring you to cover the shortfall from other income. This is often called being "cash flow negative" or "negatively geared." While some investors accept this in expectation of capital appreciation, sustained negative cash flow increases financial risk, particularly during extended vacancy periods.

How can I improve my monthly cash flow?

The most effective ways to improve monthly cash flow are: increasing rent to the current market rate for the area, reducing vacancy by building strong tenant relationships and offering prompt maintenance, refinancing to a lower mortgage rate if current rates have dropped since the loan was originated, and reducing operating expenses by reviewing service charge agreements and insurance costs annually. IONROI tracks your actual monthly income and expenses so you can see which factors are compressing your cash flow over time.