CALCULATION GUIDE
How to Calculate Rental Property Cash Flow
Move from scheduled rent to realistic cash flow after vacancy, operations and debt service.
Calculation approach
Begin with scheduled rent and other recurring income. Deduct vacancy and credit loss to find effective income, then deduct operating expenses to calculate NOI. Mortgage principal and interest come after NOI when calculating cash flow.
How to use the result
Keep capital replacements and one-time acquisition costs visible even when they are not included in NOI. Test higher vacancy, repairs and interest rates before relying on the result.