Analyze your real estate investment deal instantly.
Purchase Information
Income & Expenses
Cash Flow / Mo$0.00
Cash on Cash ROI0.00%
Cap Rate0.00%
Monthly Breakdown
Gross Rental Income:
– Vacancy & Maintenance Savings:
– Property Taxes & Insurance:
– HOA Fees:
– Mortgage Payment (P&I):
Net Monthly Cash Flow:
Investment Summary
Total Cash Invested (Down + Close + Rehab):
Loan Amount:
function calculateRentalROI() {
// 1. Get Inputs
var price = parseFloat(document.getElementById('rp_price').value) || 0;
var downPercent = parseFloat(document.getElementById('rp_down_percent').value) || 0;
var interestRate = parseFloat(document.getElementById('rp_interest').value) || 0;
var termYears = parseFloat(document.getElementById('rp_term').value) || 0;
var closingCosts = parseFloat(document.getElementById('rp_closing').value) || 0;
var rehabCosts = parseFloat(document.getElementById('rp_rehab').value) || 0;
var monthlyRent = parseFloat(document.getElementById('rp_rent').value) || 0;
var annualTax = parseFloat(document.getElementById('rp_tax').value) || 0;
var annualIns = parseFloat(document.getElementById('rp_insurance').value) || 0;
var monthlyHOA = parseFloat(document.getElementById('rp_hoa').value) || 0;
var vacancyRate = parseFloat(document.getElementById('rp_vacancy').value) || 0;
var maintRate = parseFloat(document.getElementById('rp_maintenance').value) || 0;
// 2. Perform Calculations
// Investment Basics
var downPaymentAmount = price * (downPercent / 100);
var loanAmount = price – downPaymentAmount;
var totalCashInvested = downPaymentAmount + closingCosts + rehabCosts;
// Mortgage Calculation
var monthlyRate = (interestRate / 100) / 12;
var numPayments = termYears * 12;
var monthlyMortgage = 0;
if (loanAmount > 0 && monthlyRate > 0) {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
} else if (loanAmount > 0 && monthlyRate === 0) {
monthlyMortgage = loanAmount / numPayments;
}
// Monthly Expenses Breakdown
var monthlyTax = annualTax / 12;
var monthlyIns = annualIns / 12;
var vacancyCost = monthlyRent * (vacancyRate / 100);
var maintCost = monthlyRent * (maintRate / 100);
var operatingExpenses = monthlyTax + monthlyIns + monthlyHOA + vacancyCost + maintCost;
var totalExpenses = operatingExpenses + monthlyMortgage;
// Metrics
var monthlyCashFlow = monthlyRent – totalExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// NOI (Net Operating Income) for Cap Rate
// NOI usually excludes mortgage payments
var annualNOI = (monthlyRent * 12) – (operatingExpenses * 12);
// ROI Calculations
var cashOnCashROI = 0;
if (totalCashInvested > 0) {
cashOnCashROI = (annualCashFlow / totalCashInvested) * 100;
}
var capRate = 0;
var totalCostBasis = price + rehabCosts + closingCosts; // Cap rate is often based on current value or total cost
if (totalCostBasis > 0) {
capRate = (annualNOI / totalCostBasis) * 100;
}
// 3. Update UI
// Helper for currency
var fmt = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' });
// Top Metrics
var elCashFlow = document.getElementById('res_cashflow');
elCashFlow.textContent = fmt.format(monthlyCashFlow);
elCashFlow.className = monthlyCashFlow >= 0 ? "rp-metric-val rp-positive" : "rp-metric-val rp-negative";
var elCoC = document.getElementById('res_coc');
elCoC.textContent = cashOnCashROI.toFixed(2) + "%";
elCoC.className = cashOnCashROI >= 0 ? "rp-metric-val rp-positive" : "rp-metric-val rp-negative";
document.getElementById('res_cap').textContent = capRate.toFixed(2) + "%";
// Breakdown List
document.getElementById('res_gross_income').textContent = fmt.format(monthlyRent);
document.getElementById('res_reserves').textContent = "-" + fmt.format(vacancyCost + maintCost);
document.getElementById('res_tax_ins').textContent = "-" + fmt.format(monthlyTax + monthlyIns);
document.getElementById('res_hoa_fee').textContent = "-" + fmt.format(monthlyHOA);
document.getElementById('res_mortgage').textContent = "-" + fmt.format(monthlyMortgage);
var elNet = document.getElementById('res_net_cashflow');
elNet.textContent = fmt.format(monthlyCashFlow);
elNet.style.color = monthlyCashFlow >= 0 ? "#27ae60" : "#c0392b";
// Summary List
document.getElementById('res_total_invested').textContent = fmt.format(totalCashInvested);
document.getElementById('res_loan_amount').textContent = fmt.format(loanAmount);
// Show Results
document.getElementById('rp_results_area').style.display = "block";
}
Understanding Real Estate Investment Metrics
Investing in rental properties is one of the most reliable ways to build wealth, but the difference between a profitable asset and a money pit often comes down to the math. Using this Rental Property Cash Flow & ROI Calculator helps investors objectively analyze potential deals by breaking down income, expenses, and returns.
What is Cash on Cash ROI?
Cash on Cash Return on Investment (ROI) is arguably the most important metric for rental property investors. Unlike general ROI, which might look at the total value of the home, Cash on Cash measures the annual pre-tax cash flow relative to the actual cash you invested (down payment, closing costs, and rehab costs).
Formula: Annual Cash Flow / Total Cash Invested
For example, if you invest $50,000 cash to buy a property and it generates $5,000 in positive cash flow per year, your Cash on Cash ROI is 10%. This allows you to compare real estate returns directly against other investments like stocks or bonds.
Cap Rate vs. Cash Flow
While Cash Flow tells you how much money lands in your pocket every month, the Capitalization Rate (Cap Rate) measures the property's natural rate of return assuming it was bought with all cash. It is calculated by dividing the Net Operating Income (NOI) by the property's purchase price.
High Cap Rate: Generally indicates higher risk or a lower-cost area, but higher potential returns relative to price.
Low Cap Rate: Generally indicates a stable, high-demand area where property values are high (like city centers).
Why Include Vacancy and Maintenance?
Novice investors often make the mistake of calculating profit as simply Rent minus Mortgage. This is dangerous. Real estate requires reserves for:
Vacancy: The property won't be rented 365 days a year. A 5-8% vacancy rate is a standard conservative estimate.
Maintenance & CapEx: Roofs leak, water heaters break, and carpets wear out. Setting aside 10-15% of monthly rent ensures you have the funds when these expenses arise, keeping your cash flow calculations realistic.
Use the calculator above to adjust these variables and stress-test your investment before signing on the dotted line.