Rental Income Calculator
Net Rental Income
Calculate net monthly and annual rental income after expenses
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Formula
Net Cash Flow = (Monthly Rent × (1 − Vacancy%)) − Mortgage − Tax − Insurance − Maintenance − Management | NOI = Effective Rent − Operating Expenses (no mortgage)
Frequently Asked Questions
How do I calculate net rental income?
Net rental income = Gross rent × (1 − vacancy rate) − all expenses (mortgage, taxes, insurance, maintenance, management). This gives you your monthly cash flow. Multiply by 12 for annual cash flow.
What is a good vacancy rate to assume?
Most investors assume a 5-10% vacancy rate for residential properties. In strong rental markets the actual vacancy may be lower (2-4%), while weaker markets or seasonal rentals can be higher (10-20%).
What is NOI?
Net Operating Income (NOI) is gross rental income minus operating expenses, but EXCLUDING mortgage payments. NOI = Effective Rent − Property Tax − Insurance − Maintenance − Management. It's used to calculate cap rate and evaluate property performance independent of financing.
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