Landlord Cash Reserve Calculator
The mortgage is due whether the unit is rented or not. This calculator sizes a cash reserve that keeps you solvent through vacancies, turnover, and the inevitable surprise repair — and tells you how your current savings measure up. This is a planning estimate, not financial or tax advice.
Monthly numbers
Principal + interest. Put escrow in taxes/insurance if you pay them separately.
Annual tax bill ÷ 12 if escrowed.
Landlord policy premium ÷ 12.
HOA, utilities you pay, management fee, lawn/snow.
Liquid savings earmarked for this property.
Risk assumptions
8% ≈ about one month vacant per year.
Rule of thumb: 5–10% of gross rent.
How to read the results
- Recommended reserve (months): starts at 4 months of fixed carrying costs and grows with your vacancy and capex assumptions — roughly half a month for each expected vacant month per year, plus a quarter month per year of capex cost, capped at 9 months. Higher risk = more months.
- Fixed carrying costs are what you owe every month no matter what: mortgage, taxes, insurance, and other fixed costs. Vacancy doesn't pause them.
- True monthly cost adds expected vacancy loss and capex to the fixed costs — the full picture of what the property costs you on average.
- Verdict bands: covering 100%+ of the recommended reserve is on target; 75–100% is close; 50–75% is thin; under 50% is under-reserved. Over 150% means capital is sitting idle that could be working elsewhere.
- Recalculate whenever a lease turns over, taxes reset, or your risk tolerance changes.