Property Cash Flow Calculator

Estimate your property income after expenses to understand whether your investment is positively or negatively geared.

What is property cash flow?

Property cash flow is the difference between the income generated from a property and the expenses associated with owning it. Positive cash flow means your property earns more than it costs, while negative cash flow means your expenses exceed your income..

How is property cash flow calculated?

Property cash flow is calculated by subtracting your total expenses from your rental income. Expenses can include mortgage repayments, maintenance costs, property management fees, insurance, and council rates.

Why is property cash flow important for investors?

Cash flow is important because it determines whether your investment property is financially sustainable. Positive cash flow can provide ongoing income, while negative cash flow may require you to cover shortfalls from your own funds.

Positive gearing occurs when your rental income exceeds your expenses, resulting in profit. Negative gearing occurs when your expenses are higher than your rental income, which may provide tax benefits but requires additional cash to maintain the investment.

What is positive vs negative gearing?

Frequently Asked Questions

Does property cash flow include capital growth?

No. Property cash flow focuses on income and expenses only. Capital growth refers to increases in the property’s value over time and is considered separately from cash flow.

What expenses should investors include in cash flow calculations?

Investors should generally include all ongoing property expenses such as loan repayments, rates, insurance, repairs, maintenance, strata fees, property management fees, and vacancy allowances.

Is cash flow more important than rental yield?

Cash flow and rental yield measure different aspects of a property investment. Rental yield focuses on income performance relative to property value, while cash flow measures the actual money remaining after expenses.

Can a property have strong capital growth but poor cash flow?

Yes. Some properties may experience strong long-term capital growth while generating low rental income or negative cash flow in the short term. Investors often balance both growth potential and cash flow when assessing property investments. Related Calculators

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