Calculating the Return on Investment (ROI) for a rental property is crucial for understanding its profitability and making informed investment decisions. This calculator helps you estimate your potential ROI by considering various income and expense factors.
function calculateROI() {
var purchasePrice = parseFloat(document.getElementById("purchasePrice").value);
var downPayment = parseFloat(document.getElementById("downPayment").value);
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var closingCosts = parseFloat(document.getElementById("closingCosts").value);
var renovationCosts = parseFloat(document.getElementById("renovationCosts").value);
var annualRentalIncome = parseFloat(document.getElementById("annualRentalIncome").value);
var annualOperatingExpenses = parseFloat(document.getElementById("annualOperatingExpenses").value);
var annualMortgageInterest = parseFloat(document.getElementById("annualMortgageInterest").value);
var annualDepreciation = parseFloat(document.getElementById("annualDepreciation").value);
var annualCapitalAppreciationPercent = parseFloat(document.getElementById("annualCapitalAppreciation").value);
var totalCashInvested = downPayment + closingCosts + renovationCosts;
var annualNetOperatingIncome = annualRentalIncome – annualOperatingExpenses;
var annualCashFlow = annualNetOperatingIncome – (loanAmount > 0 ? (annualMortgageInterest + (loanAmount / (loanAmount / (parseFloat(document.getElementById('loanAmount').value) / parseFloat(document.getElementById('loanAmount').value)) /* This part is simplified as a placeholder for actual loan amortization */ )) : 0); // Simplified interest component
var totalTaxDeductions = annualMortgageInterest + annualDepreciation;
var taxableIncome = annualNetOperatingIncome – totalTaxDeductions;
var appreciationValue = purchasePrice * (annualCapitalAppreciationPercent / 100);
var totalReturn = annualCashFlow + appreciationValue; // Simplified for one year
// Basic validation
if (isNaN(purchasePrice) || isNaN(downPayment) || isNaN(loanAmount) || isNaN(closingCosts) || isNaN(renovationCosts) || isNaN(annualRentalIncome) || isNaN(annualOperatingExpenses) || isNaN(annualMortgageInterest) || isNaN(annualDepreciation) || isNaN(annualCapitalAppreciationPercent)) {
document.getElementById("result").innerHTML = "Please enter valid numbers for all fields.";
return;
}
// Ensure total cash invested is not more than purchase price + costs
if (totalCashInvested > purchasePrice + closingCosts + renovationCosts) {
totalCashInvested = purchasePrice + closingCosts + renovationCosts;
}
// Calculate ROI percentage
var roiPercentage = (totalReturn / totalCashInvested) * 100;
var resultHtml = "