Rental Income Calculator

Calculate net rental income after vacancy, management, maintenance, insurance, taxes, and mortgage.

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Net Operating Income

$12,840.00

Monthly Cash Flow

-$130.00

Cash-on-Cash Return

-2.6%

Rental Income Analysis

Gross Annual Income$24,000.00
Vacancy Loss-$1,200.00
Effective Gross Income$22,800.00
Property Management-$2,280.00
Maintenance Reserve-$2,280.00
Insurance-$1,800.00
Property Tax-$3,600.00
Net Operating Income (NOI)$12,840.00
Mortgage Payments-$14,400.00
Annual Cash Flow-$1,560.00
Cash-on-Cash Return-2.6%

Use the Rental Income Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

The Rental Income Calculator helps real estate investors estimate the potential profit or loss from a rental property. It's crucial for evaluating a property's financial viability, understanding cash flow, and making informed investment decisions before purchasing or setting rental rates.

This calculator typically sums up all potential rental income (gross income) and subtracts all associated operating expenses (mortgage payments, property taxes, insurance, maintenance, vacancies, etc.) to derive the net operating income (NOI) or cash flow. Some advanced versions might also consider cap rate or return on investment (ROI).

Don't forget to include vacancy rates and unexpected maintenance costs – these are often underestimated. Also, ensure you account for all potential income streams (e.g., laundry, parking fees) and all expenses, not just the obvious ones, to get an accurate picture.

Example: scenario with a $250,000 property

  1. 1 Input: Monthly Rent: $2,000; Monthly Mortgage (P&I): $1,000; Property Taxes (monthly): $250; Insurance (monthly): $100; Maintenance (monthly estimate): $150; Vacancy Rate: 5%; Other Expenses (monthly): $50.
  2. 2 Calculation: Gross Income = $2,000. Vacancy Loss = $2,000 * 0.05 = $100. Effective Gross Income = $2,000 - $100 = $1,900. Total Expenses = $1,000 + $250 + $100 + $150 + $50 = $1,550. Net Cash Flow = $1,900 - $1,550 = $350.
  3. 3 Result: The estimated monthly net cash flow for this rental property is $350.
  4. 4 Takeaway: A positive cash flow indicates the property is generating income beyond its expenses, making it a potentially good investment. A negative cash flow signals a need to re-evaluate rental rates or expense management.

Source: CFPB — Owning a Home · Last updated: April 2026

Frequently Asked Questions

How do I calculate net rental income?
Net rental income equals gross rent minus all expenses: mortgage payment, property taxes, insurance, property management (8-12%), maintenance (1% of property value/year), vacancy (5-8%), and capital reserves.
What is the 1% rule in rental property?
The 1% rule says monthly rent should be at least 1% of the purchase price. A $300,000 property should rent for at least $3,000/month. In many markets this is hard to achieve, so 0.7-0.8% is often considered acceptable.
How much should I set aside for rental property maintenance?
Budget 1-2% of the property value per year for maintenance and repairs. For a $300,000 property, that is $3,000-$6,000 annually. Older homes and properties in harsh climates should budget toward the higher end.