Rental Property Cash Flow Calculator

Know Your Number

Cash flow is the bottom line for any investment property. Not yield, not capital growth, not what the agent told you at the open home — cash flow is the actual dollars that move in or out of your bank account each week after every expense is paid. It is the number that determines whether your property puts money in your pocket or costs you from your salary.

Most investors don’t know their true cash flow. They know the rent. They know the mortgage repayment. But they haven’t totalled the council rates, water, insurance, maintenance, vacancy, land tax, strata, and management fees into a single number and subtracted it from their rental income. The result is often a surprise — and not always a pleasant one.

The calculator above gives you the full picture in 60 seconds. Enter your rent, mortgage details, holding costs, and management arrangement, and see your weekly, monthly, and annual cash flow instantly. Toggle between a traditional property manager and Landlord Wise to see how self-management changes the result.

This page focuses on ongoing cash flow after purchase. If you are still comparing acquisition costs, estimate the upfront transfer duty first with the Stamp Duty Calculator.

What Is Rental Property Cash Flow?

Cash flow is the difference between your rental income and every expense associated with holding the property. It is usually expressed as a weekly, monthly, or annual figure.

Positive cash flow means the property generates a surplus after all costs. The rent covers the mortgage, rates, insurance, maintenance, management fees, and everything else — with money left over. You are paid to hold the asset.

Negative cash flow means your expenses exceed your rental income. You are subsidising the property from your own pocket — topping up the shortfall from your salary or other income each month.

Neither is inherently good or bad. Many successful Australian investors hold negatively geared properties because the capital growth and tax benefits more than compensate for the cash shortfall over the long term. But you need to know the number. A $50/week negative cash flow is manageable for most households. A $250/week shortfall is a different conversation entirely. The calculator above tells you exactly where you stand.

What Goes Into the Calculation

Income

Your primary income is weekly rent, annualised to a yearly figure (weekly rent × 52). But no property is rented every week of the year. Vacancy allowance accounts for the weeks between tenants, during maintenance, or while the property is being re-let. A vacancy allowance of 2–4 weeks per year is typical for well-located properties. If you don’t factor in vacancy, your cash flow projection will be too optimistic.

Mortgage

For most investors, the mortgage is the single largest expense. There are two common structures:

• Interest only (IO): You only pay the interest on the loan, not the principal. Monthly repayments are lower, which improves cash flow. Many investors use IO periods (typically 1–5 years) to maximise deductible interest while holding the property.
• Principal and interest (P&I): You repay both the interest and a portion of the loan principal each month. Higher repayments, lower cash flow — but you’re building equity and paying down the loan.

Current investment loan rates typically sit between 5.5% and 7%, depending on your lender, LVR, and whether you’re on a fixed or variable rate. Even a small rate difference has a large impact: on a $500,000 loan, every 0.5% is roughly $2,500/year.

Holding costs

These are the ongoing expenses of owning the property, regardless of whether it’s tenanted:

• Council rates: Typically $1,500–$3,500/year depending on location and property value.
• Water rates: The landlord portion (supply charges) is usually $800–$1,500/year. Usage charges are typically passed to the tenant.
• Insurance: Building insurance and landlord insurance combined typically cost $1,200–$2,500/year.
• Strata / body corporate: Applies to apartments and townhouses. Ranges from $1,500 to $8,000+ per year depending on the complex and amenities.
• Maintenance: A good rule of thumb is 1–2% of the property’s value per year. On a $600,000 property, budget $2,000–$4,000/year for repairs, replacements, and upkeep.
• Land tax: Varies by state and total land holdings. Use our land tax calculator to estimate your liability.

Property management

If you use a traditional property manager, expect to pay 5–12% of rent nationally (with averages of 5–6% in NSW and Victoria, 7–8% in Queensland, and 8.5–11% in WA), plus letting fees (1–2 weeks of rent each time a new tenant is placed), plus sundry charges for inspections, advertising, and lease renewals. On a $550/week property with an 8.5% fee and annual tenant turnover, total PM costs can reach $3,000–$4,500/year.

Self-managing eliminates the percentage fee entirely. See the full breakdown of what a traditional PM charges versus Landlord Wise

Cash Flow Positive vs Negative — What Does It Mean?

Cash flow positive means the property pays for itself. After the mortgage, rates, insurance, maintenance, management fees, and vacancy are paid, there is money left over. This surplus goes into your bank account each month. It’s the ideal position — you own a growth asset that also generates income.

Cash flow negative means you are topping up from your salary. The rent doesn’t cover all the costs, so you fund the shortfall yourself. In the current interest rate environment, this is common for Australian investment properties, particularly in Sydney and Melbourne where yields are low relative to purchase prices.

Negative gearing provides a partial offset. When your investment property runs at a loss, that loss can reduce your taxable income and lower your tax bill. For example, a $10,000 annual loss at a 37% marginal tax rate produces a $3,700 tax saving before Medicare Levy, or about $3,900 if a 2% Medicare Levy saving also applies. You are still about $6,100 out of pocket under that simplified after-tax estimate. Negative gearing reduces the pain — it does not eliminate it.

Capital growth is the other half of the equation. Many investors accept negative cash flow because they expect the property to appreciate in value over time. If a property costs you $5,000/year after tax benefits but grows by $30,000/year in value, the net position is strongly positive. But capital growth is not guaranteed, and it is not cash in your hand until you sell or refinance.

How to Improve Your Cash Flow

1. Increase rent to market rates. Even a modest $20/week increase adds $1,040/year to your income. Review rent annually against comparable listings in your area. Use our rent increase calculator to understand the impact and rules.
2. Reduce vacancy. Every empty week costs a full week of rent. Good tenant selection, responsive maintenance, and fair treatment reduce turnover. The cheapest tenant is the one you already have.
3. Switch to interest only. If your strategy and lender allow it, switching from P&I to IO reduces your repayments and improves cash flow immediately. Discuss the trade-offs with your broker — you build less equity, but you preserve cash.
4. Shop your interest rate. A 0.5% reduction on a $500,000 loan saves $2,500/year. Lenders rarely offer their best rate unprompted — you have to ask or refinance.
5. Review insurance. Get quotes annually. Don’t just auto-renew. A 10-minute phone call can save $300–$500/year.
6. Switch to self-management. This is the biggest controllable lever for most landlords. Traditional PM fees of 8.5% plus letting fees can exceed $3,000/year. Replacing that with Landlord Wise at $600/year saves $2,000–$3,000 — often enough to flip a property from negative to positive. See our PM savings calculator for the exact numbers.

Self-Managing to Improve Cash Flow

Property management fees are the largest controllable expense for most landlords. Unlike council rates or insurance, which are largely fixed, PM fees are a choice. You can eliminate them entirely by self-managing.

A typical traditional property manager charges 8.5% of rent plus letting fees. On a $550/week property with 12-month tenancies, that’s approximately $2,338 in management fees plus $1,100 in letting fees — around $3,438/year. Some charge more: 10% fees, lease renewal fees, inspection fees, advertising fees, and sundry admin charges can push the total past $4,500/year.

Landlord Wise charges no percentage of rent, no letting fees, and no hidden charges — a significant saving compared to a traditional property manager.

For a property that is $30/week cash flow negative with a traditional PM, switching to Landlord Wise can flip it to cash flow positive. Use the toggle in the calculator above to see the difference for your property.

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Frequently Asked Questions

What is rental property cash flow?

Cash flow is the difference between your rental income and all property expenses, including mortgage repayments, council rates, insurance, maintenance, strata fees, property management fees, and vacancy costs. Positive cash flow means the property generates a surplus after all costs. Negative cash flow means your expenses exceed your income.

Is my property cash flow positive or negative?

Use the calculator above to find out. Enter your weekly rent, mortgage details, and all holding costs. The calculator will show your weekly, monthly, and annual cash flow and tell you whether you're in positive or negative territory.

What is a good cash flow for a rental property?

Any positive cash flow is good — it means the property is paying for itself. In the current interest rate environment, many Australian investment properties are cash flow negative before tax benefits. A property that is cash flow neutral (breaking even) or slightly positive is considered strong. The important thing is to know your number and make informed decisions.

How can I improve my rental property cash flow?

The most effective levers are: increasing rent to market rates, reducing vacancy by maintaining the property well, negotiating a lower interest rate, switching to interest-only repayments (if appropriate for your strategy), and reducing management costs by self-managing. Switching from a traditional property manager to a self-management platform like Landlord Wise can save $2,000–$3,000 per year.

What is negative gearing?

Negative gearing means your property expenses exceed your rental income, creating a taxable loss. In Australia, this loss can be deducted against your other income (such as your salary), reducing your total tax bill. While this provides a tax benefit, it does not cover the full shortfall — you still need to fund the difference from your own pocket. Many investors accept this as part of a long-term capital growth strategy.

Should I include vacancy in my cash flow calculation?

Yes. No property is rented 52 weeks a year. Even well-located properties experience vacancy between tenants, during maintenance, or during lease-up periods. A vacancy allowance of 2–4 weeks per year is typical. If you don't factor in vacancy, your cash flow projection will be overly optimistic.

Does this calculator account for tax benefits?

No. This calculator shows your pre-tax cash flow — the actual dollars in or out of your pocket before any tax deductions. Negative gearing tax benefits, depreciation deductions, and other tax considerations are not included. For a full after-tax analysis, consult a qualified accountant or tax professional.