How the calculator works
The calculator annualises the rent, reduces it by the vacancy assumption, and subtracts the annualised expenses entered below. It reports both annual and average monthly operating cash flow.
Inputs explained
| Input | Meaning |
|---|---|
| Rent | The scheduled weekly or monthly rent before vacancy. |
| Vacancy | The share of scheduled rent assumed not to be received. |
| Management and advertising | Service and letting costs paid by the owner. |
| Maintenance and insurance | Recurring allowances; actual repairs may be uneven. |
| Rates and utilities | Owner-paid council, water or other recurring charges. |
| Other recurring costs | Body corporate, compliance or another recurring operating cost. |
Example calculation
At $600 weekly rent, 3% vacancy and $10,000 of annual operating expenses, scheduled rent is $31,200, vacancy-adjusted income is $30,264 and estimated annual operating cash flow is $20,264. This is an illustration, not a forecast.
What the result means
A positive result means the entered operating income exceeds the entered operating expenses. It does not establish total investment profit because loan payments, tax, acquisition costs, capital expenditure and sale outcomes may materially change the position.
Limitations
- Vacancy and maintenance are uncertain.
- A monthly average does not show the timing of large bills.
- Tax treatment depends on the owner and should be checked with a registered adviser.
- Legal repair and safety duties apply regardless of the estimate.
Common questions
Does this calculate rental yield? No. Yield compares income with a property value or cost base; this tool estimates operating cash flow from the inputs shown.
Does a positive result mean the property is profitable? No. Financing, tax, capital expenditure and transaction costs are outside this estimate.
Should mortgage repayments go in other costs? Use a complete financial model or professional advice instead of mixing financing into this operating-cost comparison.
Frequently asked questions
How do I calculate rental property cash flow?
Annualise the scheduled rent, reduce it for expected vacancy, then subtract recurring operating expenses. This calculator shows each of those steps separately.
Does this calculator include mortgage repayments?
No. It is an operating cash-flow estimate and deliberately keeps financing separate. Loan structure, interest, principal and tax treatment require a broader financial model.
Is positive rental cash flow the same as profit?
No. A positive result only means the entered operating income exceeds the entered operating expenses. Financing, tax, capital work, purchase and sale costs are excluded.
What vacancy rate should I use?
Use a scenario you can support from the property and market context, then test a higher-vacancy case. RentSeekr does not provide a universal vacancy forecast.
Does RentSeekr save my calculator inputs?
No. This public calculator runs in your browser without an account and does not save the values you enter.