Rental property cash flow calculator, with Schedule E

Cash flow is not taxable income.

See what you keep and what you report, for one property, for the year. Free, no signup.

Monthly rent

Vacancy (% of the year)

Monthly mortgage payment (principal + interest)

Mortgage interest for the year (optional, from your 1098; blank = 70% of payments)

Property tax, per year

Insurance, per year

Repairs and maintenance, per year

Other costs, per year (HOA, utilities, management)

Building basis for depreciation (optional: purchase price minus land) Federal tax bracket

Type the monthly rent to see your numbers.

Cash flow for the year

what you keep

Schedule E taxable income

what you report

You keep $0 in cash but report $0.

Rents received (line 3), after vacancy$0

Mortgage payments, cash cost$0

Mortgage interest (line 12), deductible$0

Principal paid, not deductible$0

Depreciation (line 18), basis over 27.5 years$0

Federal tax on Schedule E income at 22%, about$0

Interest was estimated as 70% of your mortgage payments. Enter the figure from your lender's Form 1098 for the real split.

An estimate, not tax advice. Federal only: state tax is not included. Depreciation is the building basis divided by 27.5 years, straight line, as for residential rental property; the mid-month convention for the first and last year is ignored. Tax is the Schedule E income times the bracket you chose, with no other income, credits or the qualified business income deduction.

Keep the books per property, free for 30 days

No credit card. Cancel anytime.

Numbers that come from your books, not a form.

A calculator is a guess about the whole year. In ClaryBook each property has its own books, so the cash flow and the Schedule E figures move when the rent and the repairs do.

Books per property and a Schedule E report, with rent, insurance, mortgage interest, repairs, taxes and depreciation on their lines.
A depreciation schedule for each property, so the paper expense is on the report every year without a spreadsheet.
Snap a receipt for a repair and it becomes a categorized expense.
Mortgage principal is kept off the expense lines, so the cash number and the tax number stay apart.

Questions

Why is mortgage principal not deductible?

Principal repays the loan; it buys you equity, it does not pay for the property's operation. The IRS lets you deduct the interest part of each payment (Schedule E line 12), and gives you depreciation on the building instead of a deduction for paying down the loan. That is why a property can be cash-flow positive and show a loss on Schedule E, or the other way round.

What is depreciation recapture?

When you sell, the depreciation you took (or could have taken) lowers your cost basis, and that part of the gain is taxed at up to 25% instead of the usual capital gains rate.

Repairs or improvements: which is which?

A repair keeps the property in its normal working condition (fixing a leak, replacing a broken window pane) and is deducted in full on Schedule E line 14. An improvement adds value, extends the life or adapts the property to a new use (a new roof, a kitchen remodel) and is added to the basis and depreciated over 27.5 years. The de minimis safe harbor lets you deduct items under $2,500 per invoice in the year you pay them.

Does vacancy count as a loss?

No. Rent you never received is not income and not a deduction. The calculator simply reduces the rent collected by the vacancy percentage you enter.

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