What does this calculator do?
This worksheet replaces a single operating-cost estimate with named expense lines. Annual property tax and insurance are converted to monthly amounts; management is a selected percentage of effective income. Debt service and capital reserves remain separate so you can distinguish NOI from the amount left after financing and replacement planning. A vacancy table changes income and the income-based management allowance while holding other entered bills fixed.
How to use it
- Use actual tax bills, an insurance quote, management terms, and property-specific repair estimates.
- Keep routine repairs in operating costs and major replacement planning in the separate capital reserve. Enter debt as principal and interest, not an escrow-inclusive payment.
- Inspect the 0%, 5%, 10%, 15%, and 25% vacancy scenarios. Build operating liquidity for the timing of vacancies, not just the annual average.
The math, made clear
NOI = effective income − taxes − insurance − management − routine repairs − HOA − owner utilities − other operating costs; cash flow = NOI − debt service − capital reserveA worked example
With $2,400 scheduled rent and 5% vacancy, effective income is $2,280. An 8% management allowance is $182.40. Annual tax of $3,600, insurance of $1,200, $120 repairs, $60 utilities, and $50 other costs bring operating expenses to $812.40 monthly. NOI is $1,467.60; after $1,400 debt and a $150 reserve, cash flow is negative $82.40 per month.
What to keep in mind
A pre-tax steady-state worksheet, not a forecast or tax deduction schedule. Other income is assumed collectible and is not reduced by the base-rent vacancy allowance. Management contracts can use a different fee base or fixed minimum. Excludes appreciation, sale costs, depreciation, tenant-specific information, and an inspection-based replacement schedule. The stress table changes vacancy only; it does not model all downside risks.
All default values are illustrative. Results are rounded for display; calculations use full precision except where a split must allocate exact cents. Read our methodology for shared definitions and report a calculation issue if a result looks wrong.