What this rental property calculator does
This calculator finds your monthly cash flow on a rental. You enter the rent, the expenses, and the mortgage. The tool then shows what you keep each month. It also shows the yearly cash flow. So you can see if a rental pays its way. You see the result in your currency.
Positive versus negative cash flow
Cash flow can be positive or negative. Positive means the rent covers all the costs. You keep the difference each month. Negative means the costs are higher than rent. You pay the gap from your own pocket. So the sign tells you a lot fast.
How it is calculated
The tool takes your monthly rent. It subtracts the expenses and the mortgage. So what is left is your cash flow. A higher rent lifts the result. Higher costs lower it. The result is your monthly cash flow. The calculator does this for you.
What the result tells you
The result shows your monthly cash flow. Rent of two thousand five hundred with two thousand in costs leaves five hundred. A higher rent raises it. Higher costs lower it. So it shows what the property earns you. It is an easy number to read.
The monthly rent
Your monthly rent is the income from the tenant. It is the top line of the whole sum. A higher rent lifts your cash flow. So rent drives the result the most. Use the rent you actually collect. Empty months lower the real figure. Enter your monthly rent.
The monthly expenses
Your monthly expenses are the running costs. Include tax, insurance, and repairs. Add management fees and any service charge. Leave out the mortgage, which has its own field. So this line holds the upkeep costs. Higher upkeep lowers your cash flow. Enter your monthly expenses.
The monthly mortgage
Your monthly mortgage is the loan payment. It is often the biggest single cost. A bigger loan means a bigger payment. So the mortgage weighs heavily on cash flow. Use the full monthly payment here. A paid-off home leaves this at zero. Enter your monthly mortgage.
Monthly versus annual cash flow
The tool shows both monthly and yearly figures. The monthly number is what you keep each month. The yearly number is that times twelve. So five hundred a month is six thousand a year. The yearly view shows the bigger picture. One bad month can dent the total. Read both to judge the deal.
How to use it
Enter your monthly rent first. Add the expenses and the mortgage. Read the monthly cash flow in your chosen currency. See the yearly figure too. Then try different rents. Compare a few properties. Use it to judge if a rental pays.
The limits of this calculator
Keep its limits in mind. It shows simple cash flow only. It ignores empty months and big repairs. It does not show yield or return. Tax rules can change your real result. So treat it as a guide. So read the result with a clear head.
A final tip
Use this to judge a rental's cash flow. Remember to budget for empty months. Keep a buffer for large repairs. Include every cost in the expenses. Compare the yearly figure across deals. Do not rely on rent alone. A careful check guides your purchase.