Rental Cash Flow Projection
Calculator
Results
- Cumulative cash flow
- $2,517.35
- First-year cash flow
- $-1,640.16
- Final-year cash flow
- $2,303.71
- Average annual cash flow
- $251.73
How the position develops over the projected years
- Effective rent after vacancy
- Annual cash flow
- Cumulative cash flow
Year-by-year property projection
| 1 | 18,000.00 | 17,100.00 | 4,710.00 | 14,030.16 | -1,640.16 | -1,640.16 |
| 2 | 18,540.00 | 17,613.00 | 4,836.30 | 14,030.16 | -1,253.46 | -2,893.62 |
| 3 | 19,096.20 | 18,141.39 | 4,966.01 | 14,030.16 | -854.78 | -3,748.41 |
| 4 | 19,669.09 | 18,685.63 | 5,099.24 | 14,030.16 | -443.76 | -4,192.17 |
| 5 | 20,259.16 | 19,246.20 | 5,236.06 | 14,030.16 | -20.02 | -4,212.19 |
| 6 | 20,866.93 | 19,823.59 | 5,376.58 | 14,030.16 | 416.84 | -3,795.35 |
| 7 | 21,492.94 | 20,418.29 | 5,520.91 | 14,030.16 | 867.22 | -2,928.12 |
| 8 | 22,137.73 | 21,030.84 | 5,669.14 | 14,030.16 | 1,331.54 | -1,596.58 |
| 9 | 22,801.86 | 21,661.77 | 5,821.39 | 14,030.16 | 1,810.22 | 213.64 |
| 10 | 23,485.92 | 22,311.62 | 5,977.75 | 14,030.16 | 2,303.71 | 2,517.35 |
Comparison
| Scenario | Annual cash flow | Cumulative cash flow |
|---|---|---|
| Doing nothing | -1,640.16 | -16,401.61 |
| Your scenario | 2,303.71 | 2,517.35 |
Formula
cash_y = rent_y(1−v) − [rent_y(1−v)·f + expenses_y] − mortgage_y= 2517.35
Note
This is a simplified projection model. It compounds the growth, cost and return rates you enter at a constant annual rate and amortizes mortgages on a standard fixed-rate annuity; real property markets, rents, interest rates, vacancy, maintenance and running costs move irregularly and can fall as well as rise. Taxes are applied only as the flat rate and allowance you enter: stamp duty and other transfer taxes are usually banded, capital gains relief, principal-residence exemptions, rental-income tax, depreciation and allowable expenses vary by country and by your circumstances and are not modelled here. Transaction, legal, letting and selling costs are taken as the percentages you supply. Baseline comparisons hold the alternative flat and ignore what else the money might have done. These results are general information, not investment, mortgage, tax or legal advice: consult a qualified professional before committing to a property decision.
More in Property projections
See all →Frequently asked questions
What counts as cash flow in this calculator, and what doesn't?+
Cash flow is rental income minus actual cash expenses — mortgage payment, property tax, insurance, maintenance, vacancy allowance, and management fees if applicable. It excludes non-cash items like depreciation, which matter for taxes but don't affect the cash in your pocket.
Why include a vacancy allowance if the unit is currently rented?+
Because no rental stays occupied 100% of the time over multiple years — tenants move out, units need turnover time, and building in a vacancy assumption (commonly 5-8% of gross rent) prevents an overly optimistic projection that ignores this near-certain cost.
My monthly cash flow is positive but small — is that a problem?+
A thin margin leaves little room for an unexpected repair, a rent-collection gap, or a rate increase on a variable-rate mortgage. It's worth checking how sensitive the projection is to a modest rent decrease or expense increase before relying on a slim positive number.
Does positive cash flow mean the investment is profitable overall?+
Not necessarily by itself — total return also includes equity buildup from mortgage paydown and any property appreciation, both of which aren't part of monthly cash flow. A property can have thin or negative cash flow and still be a good long-term investment if appreciation and equity growth are strong.
How should I treat one-time capital expenses like a new roof?+
They're better modeled as a periodic reserve contribution (a set-aside amount per month) rather than ignored entirely, since a roof or major system will eventually need replacement. Some projections build this in as a capital expenditure reserve line rather than a monthly maintenance cost.