Landlord Expense & Net Income Calculator
Calculate your rental property's net income after all operating expenses, mortgage payments, and vacancy losses. Understand your true cash flow and return on investment.
Rental Income
Mortgage / Financing
Fixed Annual Expenses
Variable / Operating Expenses
Property Value (for ROI)
Formulas Used
Gross Potential Rent (GPR) = (Monthly Rent + Other Monthly Income) × 12
Vacancy Loss = GPR × (Vacancy Rate / 100)
Effective Gross Income (EGI) = GPR − Vacancy Loss
Maintenance Cost = (Monthly Rent × 12) × (Maintenance Rate / 100)
Management Fee = EGI × (Management Rate / 100)
Total Operating Expenses = Property Tax + Insurance + HOA + Maintenance + Management Fee + Utilities + Advertising + Other
Net Operating Income (NOI) = EGI − Total Operating Expenses
Annual Cash Flow = NOI − Annual Mortgage Payments
Monthly Cash Flow = Annual Cash Flow / 12
Expense Ratio = (Total Operating Expenses / EGI) × 100
Cap Rate = (NOI / Property Value) × 100
Gross Rent Multiplier (GRM) = Property Value / (Monthly Rent × 12)
Assumptions & References
- NOI (Net Operating Income) is calculated before mortgage/financing costs, consistent with standard real estate appraisal practice (Appraisal Institute).
- Maintenance is estimated as a percentage of gross annual rent. The commonly cited "1% rule" suggests 1% of property value annually; 5% of rent is a widely used alternative benchmark.
- Vacancy rate of 5% is a common national average for residential rentals (U.S. Census Bureau, American Community Survey).
- Property management fees typically range from 8%–12% of collected rent for residential properties.
- Cap Rate benchmarks: below 4% = low yield / high-value market; 4%–8% = moderate; above 8% = higher yield / higher risk.
- Cash-on-Cash return shown here uses total property value as a proxy for invested capital. For accurate results, use your actual cash invested (down payment + closing costs + rehab).
- This calculator does not account for depreciation, income tax deductions, or appreciation — consult a CPA for tax planning.
- References: IRS Publication 527 (Residential Rental Property), National Association of Realtors (NAR) investment property guidelines.