---
title: "Cash flow — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/cash-flow/
---

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Investing[All terms starting with C](/glossary/#letter-C)

# Cash flow

What remains each month after rent has covered operating expenses and debt service.

Cash flow is rent minus operating expenses minus the mortgage payment. Honest cash flow subtracts vacancy, management, maintenance, and capital reserves even in months nothing goes wrong.

A property that only cash flows when fully occupied with no repairs is not producing cash flow; it is producing a good month.

## Put a number on it

This term feeds the calculators below.

- [Cash-on-Cash Return CalculatorCalculate cash-on-cash return for an investment property.](/calculators/cash-on-cash/)
- [ROI CalculatorMeasure total ROI for a real estate investment with costs.](/calculators/roi/)

## Related terms

- [NOI (Net Operating Income)Income after operating expenses but before debt service, taxes on income, and capital expenditures.](/glossary/noi/)
- [Cash-on-cash returnAnnual pre-tax cash flow divided by the cash you actually invested, measuring return on money out of pocket.](/glossary/cash-on-cash-return/)
- [Vacancy rateThe share of time or units sitting empty, budgeted as a reduction to expected rental income.](/glossary/vacancy-rate/)
- [CapEx (Capital expenditures)Large, infrequent replacements (roof, HVAC, water heater), budgeted monthly even though they are paid rarely.](/glossary/capex/)
- [Operating expensesThe recurring costs of running a property: taxes, insurance, management, maintenance, and owner-paid utilities.](/glossary/operating-expenses/)

## More in Investing

- [1% rule](/glossary/one-percent-rule/)
- [1031 exchange](/glossary/1031-exchange/)
- [50% rule](/glossary/fifty-percent-rule/)
- [Appreciation](/glossary/appreciation/)
- [CAGR (Compound Annual Growth Rate)](/glossary/cagr/)
- [Cap rate (Capitalization rate)](/glossary/cap-rate/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)