How to Calculate Cash Flow on a Rental Property

BiggerPockets Blog·Published Dec 12, 2025·Pricing & Profitability
Summary

This article from BiggerPockets discusses how to accurately calculate cash flow for rental properties, a critical metric for investment success. It emphasizes the importance of including all expenses, especially variable ones like vacancy, repairs, and capital expenditures, which are often underestimated by investors. It provides a step-by-step example using the BiggerPockets Rental Property Calculator and highlights the need to factor in potential vacancy to get a realistic picture of profitability.

Key takeaway
Insight

The article emphasizes that 99% of investors calculate cash flow incorrectly, often by excluding certain expenses.

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