Enter the monthly mortgage payment, monthly insurance and tax, occupancy rate, and average monthly rent charged into the calculator to determine the rental cash flow.

## Rental Cash Flow Formula

The following equation can be used to estimate a rental cash flow.

RCF = R*OR – M – T & I

- Where RCF is the rental cash flow
- R is the average monthly rent
- OR is the occupancy rate (safe estimate of 94%)
- M is the monthly mortgage payment
- T&I is the monthly tax & insurance cost

## Rental Cash Flow Definition

Rental cash flow is defined as the total cash generated each month from a rental property after monthly costs have been subtracted.

## Rental Cash Flow Example

How to calculate rental cash flow?

**First, determine the average monthly rent.**Determine the average monthly rent charge for the unit or building.

**Next, determine the occupancy rate.**This is the percentage of months the property will be rented out.

**Next, determine the monthly mortgage payment.**Calculate the total monthly mortgage cost.

**Next, determine the taxes and insurance.**Calculate the total monthly payments made on taxes and insurance.

**Finally, calculate the rental cash flow.**Calculate the rental cash flow using the equation above.

## FAQ

**What is a good rental cash flow?**

A cash flow of at least 15% above your monthly costs is considered average.