Calculate rental income with vacancy, expenses, and mortgage.
To calculate your rental income and cash flow:
The calculator shows gross income, effective income after vacancy, net operating income, and monthly cash flow.
Rental income formulas:
Gross Annual Income = Monthly Rent × 12Effective Income = Gross Income × (1 − Vacancy Rate)Net Operating Income (NOI) = Effective Income − Annual ExpensesCash Flow = NOI − Annual Mortgage PaymentsExample: $2,000/month rent, 5% vacancy, $600/month expenses, $900/month mortgage.
$2,000 × 12 = $24,000$24,000 × 0.95 = $22,800$22,800 − ($600 × 12) = $15,600$15,600 − ($900 × 12) = $4,800A 5–8% vacancy rate is standard for residential properties in stable markets. In high-demand urban areas it may be 3–5%, while in rural areas or volatile markets you might use 10% or more.
Include property management fees (8–10% of rent), repairs and maintenance (1% of property value per year), insurance, property taxes, HOA fees, and a reserve for capital expenditures like roof or HVAC replacement.
Many investors target at least $100–$200 per unit per month in cash flow after all expenses and mortgage. However, the right target depends on your market, investment strategy, and how much equity appreciation you expect.