Months Until Cash Flow Positive
Number of months before the property generates positive monthly cash flow.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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Months Until Cash Flow Positive Formula
Month
where (Rent x Growth) - Expenses - Mortgage > 0
What This Means
A sample property priced at $385,000 with $2,850/month rent has a months until cash flow positive of 77 months. If a property is cash flow negative at purchase, knowing when it turns positive helps you plan reserves. A property that turns positive in 6 months may be worth the short-term subsidy; one that takes 5 years might not be.
Where This Value Comes From
Months Until Cash Flow Positive is not entered directly — it is calculated from Cash Flow Before Tax. See the formula breakdown above and the detailed inputs below.
Calculated From
Months Until Cash Flow Positive is calculated using these inputs:
Platform Distribution
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Unlock Rental Property CalculatorWhy It Matters
If a property is cash flow negative at purchase, knowing when it turns positive helps you plan reserves. A property that turns positive in 6 months may be worth the short-term subsidy; one that takes 5 years might not be.
Detailed Explanation
For properties that start with negative cash flow, this metric calculates how many months of rent growth are needed before monthly income exceeds monthly expenses. Returns 0 if already cash flow positive.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
Projected Cash Flow (Year 1-5)
XYear-by-year cash flow projection for 5 years with growth assumptions.
Projected NOI (Year 1-5)
XYear-by-year NOI projection for 5 years.
Cumulative Cash Flow Year 5
VTotal cash flow collected over the first 5 years.
Cash Flow Growth Rate
VPercentage change in cash flow from Year 1 to Year 2.
Break-Even Occupancy Rate
VMinimum occupancy rate needed to cover all expenses and debt service.
Other Income Appreciation Rate
1Annual growth rate for other income sources like parking, laundry, or storage.
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