Rental Property Cash Flow Calculator
Models monthly cash flow, cap rate, cash-on-cash return, and the depreciation tax shield for a rental property.
What this calculator includes and doesn't
- Includes: mortgage P+I, property tax, insurance, vacancy/maintenance reserve, property management, straight-line depreciation on building portion, tax shield at your marginal rate.
- Doesn't include: appreciation (the biggest long-run return), cost segregation acceleration (can triple year-1 depreciation), passive activity loss rules (suspends depreciation if not REPS), equity build from principal paydown, exit tax (depreciation recapture).
Real return has four components: (1) cash flow (usually 2-6%), (2) principal paydown (builds equity silently), (3) appreciation (historically 3-5% real), (4) tax advantages (depreciation shield + 1031 exchanges at exit). Most investors only track (1). Specialist advisor models all four.
When cash flow "works"
Rule of thumb: monthly cash flow should be positive AFTER vacancy reserves, maintenance, property management, and the mortgage. Too many investors calculate "my rent minus my mortgage" and declare victory, then hit a $15K furnace replacement in year 2 and realize the numbers never worked.
Cap rate comparison benchmarks (2026):
- Single-family rental, HCOL metros: 3-5% (cash-flow thin, rely on appreciation)
- Single-family rental, MCOL/LCOL: 6-9% (cash-flow positive)
- Small multi-family (2-4 units): 5-8%
- Commercial multi-family: 5-7%
- Industrial: 5-7%
- Retail strip centers: 6-9% (higher for reason — tenant risk)
Get your portfolio modeled
Specialist advisor incorporates your full portfolio including 1031 strategy, cost seg opportunities, and REPS qualification. Free match.