/* Scoped styles for the calculator component */
.roi-calc-wrapper {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
padding: 20px;
background: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 2px 10px rgba(0,0,0,0.05);
}
.roi-calc-header {
text-align: center;
margin-bottom: 25px;
}
.roi-calc-header h2 {
color: #2c3e50;
margin-bottom: 10px;
}
.roi-calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.roi-calc-grid {
grid-template-columns: 1fr;
}
}
.roi-input-group {
margin-bottom: 15px;
}
.roi-input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #34495e;
font-size: 14px;
}
.roi-input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box; /* Important for padding */
}
.roi-input-group input:focus {
border-color: #3498db;
outline: none;
}
.roi-section-title {
grid-column: 1 / -1;
border-bottom: 2px solid #eee;
padding-bottom: 5px;
margin-top: 10px;
margin-bottom: 15px;
color: #7f8c8d;
font-weight: bold;
text-transform: uppercase;
font-size: 12px;
letter-spacing: 1px;
}
.roi-btn-container {
grid-column: 1 / -1;
text-align: center;
margin-top: 20px;
}
.roi-btn {
background-color: #27ae60;
color: white;
border: none;
padding: 12px 30px;
font-size: 18px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
transition: background-color 0.3s;
}
.roi-btn:hover {
background-color: #219150;
}
.roi-results-area {
grid-column: 1 / -1;
background: #fff;
border: 1px solid #ddd;
border-radius: 6px;
padding: 20px;
margin-top: 20px;
display: none; /* Hidden by default */
}
.roi-result-row {
display: flex;
justify-content: space-between;
padding: 10px 0;
border-bottom: 1px solid #eee;
}
.roi-result-row:last-child {
border-bottom: none;
}
.roi-result-label {
color: #555;
}
.roi-result-value {
font-weight: bold;
color: #2c3e50;
}
.roi-highlight {
font-size: 1.2em;
color: #27ae60;
}
.roi-error {
color: #e74c3c;
text-align: center;
grid-column: 1 / -1;
display: none;
margin-top: 10px;
}
/* Content Styling */
.roi-content {
max-width: 800px;
margin: 40px auto;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
line-height: 1.6;
color: #333;
}
.roi-content h2 {
color: #2c3e50;
margin-top: 30px;
border-bottom: 2px solid #f1f1f1;
padding-bottom: 10px;
}
.roi-content h3 {
color: #34495e;
margin-top: 20px;
}
.roi-content p {
margin-bottom: 15px;
}
.roi-content ul {
margin-bottom: 15px;
padding-left: 20px;
}
.roi-content li {
margin-bottom: 8px;
}
.roi-faq-box {
background: #fdfdfd;
border-left: 4px solid #3498db;
padding: 15px;
margin-bottom: 20px;
}
function calculateRentalROI() {
// Clear errors
document.getElementById('errorMsg').style.display = 'none';
document.getElementById('resultsArea').style.display = 'none';
// 1. Get Values
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value) || 0;
var downPayment = parseFloat(document.getElementById('downPayment').value) || 0;
var closingCosts = parseFloat(document.getElementById('closingCosts').value) || 0;
var rehabCosts = parseFloat(document.getElementById('rehabCosts').value) || 0;
var interestRate = parseFloat(document.getElementById('interestRate').value) || 0;
var loanTerm = parseFloat(document.getElementById('loanTerm').value) || 0;
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var monthlyExpenses = parseFloat(document.getElementById('monthlyExpenses').value) || 0;
var vacancyRate = parseFloat(document.getElementById('vacancyRate').value) || 0;
// Basic Validation
if (purchasePrice <= 0 || monthlyRent 0 && interestRate > 0 && loanTerm > 0) {
var monthlyRate = (interestRate / 100) / 12;
var numPayments = loanTerm * 12;
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
} else if (loanAmount > 0 && interestRate === 0) {
monthlyMortgage = loanAmount / (loanTerm * 12);
}
// Income Calculations (Vacancy Loss)
var vacancyLoss = monthlyRent * (vacancyRate / 100);
var effectiveGrossIncome = monthlyRent – vacancyLoss;
// Total Monthly Outflow (Mortgage + OpEx)
var totalMonthlyExpenses = monthlyMortgage + monthlyExpenses;
// Monthly Cash Flow
var monthlyCashFlow = effectiveGrossIncome – totalMonthlyExpenses;
// Annual Cash Flow
var annualCashFlow = monthlyCashFlow * 12;
// Net Operating Income (NOI) = Income – Operating Expenses (Excluding Mortgage)
var monthlyNOI = effectiveGrossIncome – monthlyExpenses;
// Total Cash Invested
var totalCashInvested = downPayment + closingCosts + rehabCosts;
// Cash on Cash Return
var cocReturn = 0;
if (totalCashInvested > 0) {
cocReturn = (annualCashFlow / totalCashInvested) * 100;
}
// 3. Update DOM
// Formatting function
var formatCurrency = function(num) {
return '$' + num.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
};
var formatPercent = function(num) {
return num.toFixed(2) + '%';
};
document.getElementById('resMortgage').innerText = formatCurrency(monthlyMortgage);
document.getElementById('resTotalExpenses').innerText = formatCurrency(totalMonthlyExpenses);
document.getElementById('resNOI').innerText = formatCurrency(monthlyNOI);
var cashFlowEl = document.getElementById('resCashFlow');
cashFlowEl.innerText = formatCurrency(monthlyCashFlow);
cashFlowEl.style.color = monthlyCashFlow >= 0 ? '#27ae60' : '#c0392b';
var annualCashFlowEl = document.getElementById('resAnnualCashFlow');
annualCashFlowEl.innerText = formatCurrency(annualCashFlow);
annualCashFlowEl.style.color = annualCashFlow >= 0 ? '#27ae60' : '#c0392b';
document.getElementById('resCashInvested').innerText = formatCurrency(totalCashInvested);
var cocEl = document.getElementById('resCoC');
cocEl.innerText = formatPercent(cocReturn);
cocEl.style.color = cocReturn >= 0 ? '#27ae60' : '#c0392b';
// Show Results
document.getElementById('resultsArea').style.display = 'block';
}
Mastering Rental Property Investment: Understanding Cash on Cash Return
Investing in real estate is one of the most reliable ways to build long-term wealth, but not every property is a good deal. To separate the winners from the losers, savvy investors rely on specific financial metrics. The most practical of these for rental property investors is the Cash on Cash Return (CoC).
This calculator helps you determine the profitability of a rental property based on the actual cash you invest, rather than the total purchase price. This distinction is crucial for investors who use leverage (mortgages) to acquire assets.
What is Cash on Cash Return?
Cash on Cash Return is a percentage that measures the annual pre-tax cash flow generated by a property relative to the total cash invested. Unlike Cap Rate, which looks at the property's unleveraged potential, CoC Return takes your financing strategy into account.
The Formula:
Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100
Input Guide: How to Use This Calculator
To get the most accurate results, you need realistic data. Here is a breakdown of the inputs required:
- Purchase Price: The agreed-upon price of the property.
- Down Payment & Closing Costs: The actual cash leaving your bank account to close the deal.
- Rehab Costs: Immediate repairs needed to make the property rent-ready. These are part of your initial investment.
- Vacancy Rate: No property is occupied 100% of the time. A standard conservative estimate is 5-8%.
- Operating Expenses (OpEx): This includes property taxes, insurance, HOA fees, maintenance reserves, and property management fees.
Interpreting Your Results
Once you hit "Calculate," you will see several key metrics:
1. Monthly Cash Flow
This is your profit after all expenses, including the mortgage, are paid. A positive cash flow means the property pays for itself and puts money in your pocket. A negative cash flow means you are feeding the property monthly.
2. Net Operating Income (NOI)
This is the income the property generates after operating expenses but before the mortgage is paid. This figure is used to calculate the Cap Rate and valuation of the property.
3. Cash on Cash Return %
This is your "bottom line" efficiency metric.
- 8-12%: Generally considered a solid return for passive buy-and-hold investors.
- 15%+: Considered an excellent return, often found in riskier markets or properties requiring significant work (BRRRR strategy).
- Below 5%: You might be better off investing in index funds or high-yield savings accounts, unless the property has massive appreciation potential.
Example Scenario
Imagine you buy a property for $200,000. You put $40,000 (20%) down and pay $5,000 in closing costs. Your total cash invested is $45,000.
After paying the mortgage and all expenses, the property generates $300 per month in pure profit (cash flow).
Annual Cash Flow = $300 x 12 = $3,600
CoC Return = ($3,600 / $45,000) x 100 = 8.0%
This means your money is growing at 8% annually, not including the benefits of loan paydown or property appreciation.