1. What is Rental Property Cash Flow?

Cash flow is the net amount of money flowing in and out of your rental property each month. Positive cash flow means your property generates more income than expenses, while negative cash flow means it costs you money to maintain.

2. How Does the Calculator Work?

The calculator uses the simple cash flow formula:

Where:

• Rental Income — Total monthly rent received from tenants (NZD)
• Expenses — All property-related costs (maintenance, insurance, rates, etc.) (NZD)
• Mortgage Payment — Monthly loan repayment amount (NZD)

Explanation: This calculation gives you the monthly profit or loss from your rental property investment.

3. Importance of Cash Flow Calculation

Details: Understanding your property's cash flow helps determine its viability as an investment, plan for expenses, and assess financial risk.

4. Using the Calculator

Tips: Enter all values in NZD. Be sure to include all expenses (property management, maintenance, insurance, rates) for accurate results.

5. Frequently Asked Questions (FAQ)

Q1: What is considered good cash flow in NZ?
A: Generally $100-$200+ positive cash flow per week is good, but depends on property value and location.

Q2: Should I include depreciation in expenses?
A: No, depreciation is a non-cash expense and shouldn't be included in cash flow calculations.

Q3: What if my property has negative cash flow?
A: Negative cash flow may be acceptable if you expect strong capital gains, but requires careful financial planning.

Q4: How often should I calculate cash flow?
A: Recalculate whenever rents change, expenses increase, or interest rates change.

Q5: Are there tax implications for cash flow?
A: Yes, positive cash flow is taxable income, while negative cash flow may be deductible against other income.