Rental Income Calculator

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

By Konstantin Iakovlev · Updated October 2026 · Source: IRS Publication 527 — Residential Rental Property · Methodology

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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.

The calculator starts from a year of rent and takes off the vacancy allowance to get effective gross income. From that it subtracts property management and a maintenance reserve, each a percentage of effective gross income (10% by default), and the monthly insurance and property tax you enter; what is left is net operating income (NOI). The mortgage payment is not an operating expense, so it comes off after NOI to give cash flow, and if you enter the cash you invested, the calculator divides a year's cash flow by it to show your cash-on-cash return.

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: A $2,000-a-Month Rental

  1. 1 Input: Monthly Rent $2,000; Vacancy Rate 5%; Property Management 10%; Maintenance Reserve 10%; Insurance $150/month; Property Tax $300/month; Mortgage Payment $1,200/month; Down Payment $60,000 (the calculator's defaults).
  2. 2 Income: $2,000 × 12 = $24,000 gross. Vacancy loss at 5% is $1,200, leaving effective gross income of $22,800.
  3. 3 Operating expenses: management 10% × $22,800 = $2,280, maintenance reserve 10% × $22,800 = $2,280, insurance $1,800 and property tax $3,600 a year, $9,960 in all. NOI = $22,800 − $9,960 = $12,840.
  4. 4 Cash flow: $12,840 − $14,400 of mortgage payments = −$1,560 a year, or −$130 a month, and −$1,560 ÷ $60,000 = −2.6% cash-on-cash. The rent covers the operating costs but not the loan: the NOI of $12,840 carries a mortgage of up to $1,070 a month, so this deal needs a higher rent, lower costs or a lower price. Laundry, parking or other income has no field of its own, so add it to the rent.

Source: IRS Publication 527 — Residential Rental Property · Last updated: October 2026

Frequently Asked Questions

How do I calculate net rental income?
Three numbers answer it. Net operating income is the rent you collect after vacancy minus operating costs: management (often 8-12% of rent), maintenance, insurance and property tax. Cash flow subtracts the mortgage payment from that. Taxable rental income is different again: on Schedule E you deduct the mortgage interest but not the principal, plus depreciation of the building over 27.5 years (IRS Publication 527), so it is usually lower than cash flow.
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.

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