Rental Property Cash Flow Calculator 2026
Cash flow of a let flat in Germany: rent, service charges, reserve, interest and repayment, depreciation and 2026 income tax – per month and per year.
FAQ
How do I calculate a property’s cash flow?
Rent excluding service charges, minus rental losses, non-recoverable costs, maintenance reserve contributions, interest and principal repayments gives cash flow before tax. Add the tax savings from interest, costs and depreciation, or deduct any additional tax, to obtain cash flow after tax.
Should principal repayments be included in the cash flow calculation?
Yes, when calculating how much money comes in or goes out each month. However, they are not an expense: they reduce your debt. The calculator therefore also shows them separately.
Is negative cash flow normal for a rental flat?
With a high level of borrowing, having to contribute money in the early years is common. You should plan for this deliberately and ensure it remains affordable over the long term, including during void periods, repairs or higher interest rates after the fixed-rate period ends.
Why are the tax savings higher than the cash flow might suggest?
Because depreciation (AfA) reduces tax without money leaving your account. At the same time, principal repayments and maintenance reserve contributions are not deductible for tax purposes. The taxable result and cash flow therefore differ.
Which costs within the Hausgeld payment should I deduct?
Only the portion you cannot pass on to the tenant, such as management and maintenance costs, plus contributions to the maintenance reserve. The tenant pays operating costs such as water, waste collection and caretaker services through advance service charge payments.
How much should I allow for rental losses?
Property valuation models use 2% of annual rent for flats. If you expect a change of tenant involving refurbishment, allowing two to three months’ rent for that year is more appropriate.
Does the cash flow figure apply to every year?
No. The calculator shows the first full year. With each mortgage payment, interest decreases, reducing the tax savings, while rents and costs also change. The monthly payment can change significantly after the fixed-rate period ends.