https://calculating.ca/calculators/real-estate/rental-cash-flow-vacancy-calculator/
Real Estate / THE MITEY TOOLKIT
Rental Cash Flow & Vacancy
Model operating cash flow, mortgage cost, cash-on-cash return and the occupancy needed to cover costs.
Monthly cash flow · before income tax
-$493.83
From your inputs. Explore the breakdown below.
- Annual net operating income
- $23,961.60
- Monthly mortgage payment
- $2,490.63
- Cash-on-cash return
- -3.59%
- Break-even occupancy
- 111.77%
- Operating cap rate
- 3.99%
- Debt service coverage
- 0.80×
- Break-even occupancy exceeds 100%: the entered rent cannot cover these modeled costs even with no vacancy.
- Cash flow, cap rate and cash-on-cash return answer different questions. None includes a future sale.
Where the monthly rent goes
| Item | Amount |
|---|---|
| Rent after vacancy | $3,040.00 |
| Other income | $0.00 |
| Operating costs and reserves | $1,043.20 |
| Net operating income | $1,996.80 |
| Mortgage payment | $2,490.63 |
| Cash flow before tax | -$493.83 |
Rent sensitivity · same vacancy and expenses
| Gross rent change | Monthly gross rent | Monthly cash flow |
|---|---|---|
| -10% | $2,880.00 | -$773.51 |
| 0% | $3,200.00 | -$493.83 |
| +10% | $3,520.00 | -$214.15 |
CHANGE ONE VARIABLEWhat moves your answer?
Compare five values while keeping every other input the same. These are scenarios, not likelihoods or forecasts.
| Input value | Primary result | Use scenario |
|---|
BEHIND THE ANSWER
Formula and method
Collected rent = gross rent × (1 − vacancy). NOI = collected rent + other income − operating costs. Cash flow = NOI − debt service. Cash-on-cash = annual cash flow ÷ (down payment + acquisition cash).
Property tax and insurance are entered annually and divided by twelve. Maintenance/capital reserve, condo and other costs are monthly. Management fees vary with collected rent; other entered costs are fixed. Mortgage principal and interest use the entered Canadian fixed-rate assumption. Break-even occupancy solves for collected rent sufficient to pay fixed costs and debt service after the management percentage, with entered other income held constant.
Worked examples
Unlevered zero-cost example
- Purchase price:
- 120000
- Down payment:
- 120000
- Closing and renovation cash:
- 0
- Annual fixed mortgage rate:
- 4.5
- Amortization:
- 25
- Gross monthly rent:
- 1000
- Vacancy allowance:
- 0
- Other monthly income after vacancy:
- 0
- Management fee on collected rent:
- 0
- Annual property tax:
- 0
- Annual insurance:
- 0
- Monthly maintenance and capital reserve:
- 0
- Monthly condo fees:
- 0
- Other monthly operating costs:
- 0
Monthly cash flow · before income tax: $1,000.00
Assumptions and limits
- Before income tax, depreciation, financing fees, insurance premiums and disposition costs. Enter all cash purchase costs manually.
- Vacancy is a steady allowance, not a prediction of actual missed rent, defaults or leasing periods.
- No rent-control, eligibility, mortgage approval or purchase-tax determination.
- Cash-on-cash is not an IRR, total return or a return on the property’s full value.
This tool provides an educational estimate. Rules, rates and personal circumstances can change the answer. Review the assumptions before relying on a result. Report a correction.
Common mistakes to avoid
- Treating entered return, vacancy or rate assumptions as forecasts.
- Comparing only the headline amount without checking timing, cash costs and model limits.
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