Calculating your monthly cash flow is straightforward once you know the Rental Cash Flow formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Rental Cash Flow Calculator.
What is Rental Cash Flow?
The Rental Cash Flow calculation tells you your monthly cash flow from a few simple inputs. The figure you are solving for here is the monthly cash flow, expressed in INR.
The Rental Cash Flow formula
The core formula is:
Monthly cash flow = Monthly rent - Monthly expenses - Monthly mortgage paymentHere is what each input means:
- Monthly rent — a money amount. Example: ₹50,000.
- Monthly expenses — a money amount. Example: ₹10,000.
- Monthly mortgage payment — a money amount. Example: ₹30,000.
How to calculate it step by step
- Write down the monthly rent (for example, ₹50,000).
- Write down the monthly expenses (for example, ₹10,000).
- Write down the monthly mortgage payment (for example, ₹30,000).
- Apply the formula above to get your monthly cash flow.
- Double-check the result with the Rental Cash Flow Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Monthly rent | ₹50,000 |
| Monthly expenses | ₹10,000 |
| Monthly mortgage payment | ₹30,000 |
| Monthly cash flow | ₹10,000 |
| Annual cash flow | ₹1,20,000 |
With monthly rent of ₹50,000, monthly expenses of ₹10,000 and monthly mortgage payment of ₹30,000, the monthly cash flow works out to ₹10,000.
Example 2
With monthly rent of ₹1,00,000, monthly expenses of ₹10,000 and monthly mortgage payment of ₹30,000, the monthly cash flow works out to ₹60,000.
| Result | Value |
|---|---|
| Monthly cash flow | ₹60,000 |
| Annual cash flow | ₹7,20,000 |
Example 3
With monthly rent of ₹25,000, monthly expenses of ₹10,000 and monthly mortgage payment of ₹30,000, the monthly cash flow works out to -₹15,000.
| Result | Value |
|---|---|
| Monthly cash flow | -₹15,000 |
| Annual cash flow | -₹1,80,000 |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
- Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).
Prefer not to do the maths by hand? — the Rental Cash Flow Calculator does it instantly, for free, with the formula and a worked example built in.
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