Cash Reserve Calculator

Size the cash reserves you need to survive vacancy, capital expenditures, and an eviction cycle without panic-selling the property or tapping high-APR debt.

Monthly PITI

Principal, interest, tax, insurance.

Monthly operating expenses

Months of reserve

Lender & landlord common target: 3–12 months.

Property value

Capex buffer (% of value)

Roof, HVAC, water heater, etc.

Eviction / make-ready buffer

Current cash on hand

Target cash reserve

$25,050

months + capex + eviction buffer

Months of expenses

$16,800

Capex buffer

$3,250

Gap to fund

$17,050

32% of target funded

Why cash reserves matter

Thin reserves are the #1 reason landlords are forced to sell in a downturn. One unexpected HVAC replacement, a bad tenant eviction, or two months of vacancy during a soft rental market can wipe out a year of cash flow. Build reserves before buying the next deal, not after the first surprise.

Rate-and-term DSCR and conventional lenders often require 3–12 months of PITI in reserves to close. Always check the lender's worksheet.

How to Use

Enter monthly PITI (principal, interest, tax, insurance) and monthly operating expenses.
Enter the number of months of reserve you want — 6 months is a common baseline, 12 for higher-risk assets.
Add a capex buffer as a percent of property value for big-ticket replacements.
Add an eviction / make-ready buffer to cover a worst-case turnover.
Compare the target to current cash on hand to see how much more you need.

Frequently Asked Questions

How many months of reserves should a landlord hold?

Most conservative landlords aim for 6–12 months of PITI plus operating expenses per door. Beginners should err on the high side. Lenders often require 3–12 months of PITI to close a rental loan.

Should reserves be per property or for the whole portfolio?

For small portfolios, reserve per property. For larger portfolios, pool reserves because losses and vacancies diversify. Lenders, however, usually require per-property reserves at origination.

What's a realistic eviction buffer?

Full eviction can cost $3,000–$10,000+ including unpaid rent, legal fees, turnover costs, and lost rent during make-ready. A $5,000 buffer is a reasonable baseline for a single-family rental.

Where should reserves live?

High-yield savings or money market funds. Avoid tying reserves up in equities — the correlation with landlord stress (recession, job loss, soft rent market) is exactly when equities drop. Reserves must be liquid and stable.