Rental Income Calculator
Calculate your NOI, monthly cash flow, annual net profit, and break-even occupancy rate.
Rental Income
Monthly Expenses
Monthly Cash Flow
$125
Monthly NOI
$1,325
Annual Cash Flow
$1,500
Income Breakdown
Break-Even Analysis
Minimum rent needed: $1,869/mo
Minimum occupancy: 89%
Operating expense ratio: 30%
Disclaimer
This calculator does not account for tax benefits (depreciation, mortgage interest deduction) or capital expenditures. Consult a tax professional for complete analysis.
Understanding Net Operating Income (NOI)
NOI is the income your property generates after all operating expenses but before mortgage payments and income taxes. It's the single most important number for evaluating a rental property's profitability. A positive NOI doesn't guarantee positive cash flow — you must also cover your debt service.
Common Operating Expenses
| Expense | Typical Range |
|---|---|
| Property Taxes | 1-2% of property value/year |
| Insurance | $800-$2,500/year |
| Maintenance/Repairs | 1% of value or 10% of rent |
| Property Management | 8-10% of gross rent |
| Vacancy Reserve | 5-10% of gross rent |
| Capital Expenditures | 5-10% of gross rent |
Cash Flow vs NOI
Cash flow = NOI minus debt service (mortgage). A property with $18,000 NOI and a $15,000 annual mortgage payment produces $3,000/year ($250/month) in cash flow. Some investors target a minimum of $200/month per unit as a cash flow threshold.
IRS — Rental Income & Expenses→Frequently Asked Questions
What vacancy rate should I use?
The national average is around 6%, but it varies widely. College towns may have predictable turnover, while suburban single-family rentals might average 3-5%. Check local market data and be conservative — using 8-10% protects you from surprises.
How is rental income taxed?
Rental income is reported on Schedule E and taxed at ordinary income rates. You can deduct operating expenses, mortgage interest, and depreciation (residential property is depreciated over 27.5 years). These deductions often create a "paper loss" even when cash flow is positive.
See also: Rental Property ROI Calculator and Property Tax Calculator.