OneTaskBy Tim King · Updated
Property Cash Flow Calculator
Weekly, Monthly and Yearly Rental Cash Flow After Vacancy and Repayments
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How the Property Cash Flow Calculator works
This property cash flow calculator shows whether a rental property pays for itself. Enter the weekly rent, vacancy, the management fee, running costs and the loan, and it gives the cash flow per year, month and week, plus the weekly rent at which the property breaks even.
Property cash flow calculator formula
Cash flow is the rent you actually collect minus everything you pay out:
Rent collected = weekly rent × (52 − vacant weeks) Cash flow = rent collected − management fee − other costs − loan repayments
The management fee is a percentage of the rent collected. Other costs cover rates, insurance, maintenance and strata or body corporate fees. Loan repayments are the full principal-and-interest or interest-only payments for a year. The figure is before any income tax effects, which depend on your own situation.
Worked example: principal and interest
A property rents for 550 a week and sits empty 2 weeks a year, so 27,500 is collected. A 7% fee plus 6,000 of other costs comes to 7,925. Repayments on a 480,000 loan at 6.2% over 30 years are 35,278 a year. Cash flow is −15,703 a year, or −302 a week, and the rent would need to be 888 a week to break even.
Worked example: interest only
The same property on an interest-only loan pays 29,760 a year in repayments. Cash flow improves to −10,185 a year, −849 a month or −196 a week, and break-even rent drops to 769 a week. The loan balance does not fall, though, so the difference is not a saving.
Property cash flow reference table
Yearly repayments at 6% over 30 years, and the weekly rent that would cover principal and interest alone.
| Loan | Interest only a year at 6% | P&I a year at 6% (30 yrs) | Weekly rent to cover P&I |
|---|---|---|---|
| 200,000 | 12,000 | 14,389 | 277 |
| 250,000 | 15,000 | 17,987 | 346 |
| 300,000 | 18,000 | 21,584 | 415 |
| 350,000 | 21,000 | 25,181 | 484 |
| 400,000 | 24,000 | 28,778 | 553 |
| 450,000 | 27,000 | 32,376 | 623 |
| 500,000 | 30,000 | 35,973 | 692 |
| 550,000 | 33,000 | 39,570 | 761 |
| 600,000 | 36,000 | 43,168 | 830 |
| 650,000 | 39,000 | 46,765 | 899 |
| 700,000 | 42,000 | 50,362 | 969 |
| 750,000 | 45,000 | 53,960 | 1,038 |
| 800,000 | 48,000 | 57,557 | 1,107 |
| 850,000 | 51,000 | 61,154 | 1,176 |
| 900,000 | 54,000 | 64,751 | 1,245 |
| 950,000 | 57,000 | 68,349 | 1,314 |
| 1,000,000 | 60,000 | 71,946 | 1,384 |
| 1,050,000 | 63,000 | 75,543 | 1,453 |
| 1,100,000 | 66,000 | 79,141 | 1,522 |
| 1,150,000 | 69,000 | 82,738 | 1,591 |
Quick answers
- A negative figure is what you top up from your own pocket.
- Interest-only lowers repayments but leaves the loan untouched.
- Each vacant week costs one week's rent.
- A 1% rate rise on 500,000 adds about 5,000 a year in interest.
- Cash flow is not profit: capital growth and loan paydown are left out.
- Each vacant week costs one fifty-second of the yearly rent, so count how many weeks the property sat empty last year.
FAQ
What is negative cash flow on a rental?
It means the rent collected does not cover the loan and running costs, so you pay the shortfall yourself. Investors accept it when they expect capital growth to make up the difference.
Why is the break-even rent so high?
Loan repayments are usually the largest cost, and a principal-and-interest loan includes paying off the balance. That repayment builds your equity, so part of the negative cash flow is really saving.
What should go in other yearly costs?
Council or local rates, water, insurance, landlord insurance, repairs and maintenance, strata or body corporate fees, and any accounting fees. Add them up for a year and enter the total.
See also: all Property tools, Pay, Bills, Debt, Investing, Saving.
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