#rental-property-calculator-container .calc-box {
background: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 25px;
margin-bottom: 40px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
#rental-property-calculator-container .calc-title {
text-align: center;
color: #2c3e50;
margin-bottom: 25px;
font-size: 28px;
font-weight: 700;
}
#rental-property-calculator-container .input-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
#rental-property-calculator-container .input-grid {
grid-template-columns: 1fr;
}
}
#rental-property-calculator-container .form-group {
margin-bottom: 15px;
}
#rental-property-calculator-container label {
display: block;
margin-bottom: 5px;
font-weight: 600;
font-size: 14px;
color: #555;
}
#rental-property-calculator-container input {
width: 100%;
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
#rental-property-calculator-container input:focus {
outline: none;
border-color: #3498db;
box-shadow: 0 0 0 2px rgba(52,152,219,0.2);
}
#rental-property-calculator-container .section-header {
grid-column: 1 / -1;
margin-top: 10px;
margin-bottom: 10px;
font-size: 18px;
font-weight: bold;
color: #2980b9;
border-bottom: 2px solid #eee;
padding-bottom: 5px;
}
#rental-property-calculator-container .btn-calc {
grid-column: 1 / -1;
background-color: #27ae60;
color: white;
border: none;
padding: 15px;
font-size: 18px;
border-radius: 5px;
cursor: pointer;
width: 100%;
margin-top: 10px;
font-weight: bold;
transition: background-color 0.3s;
}
#rental-property-calculator-container .btn-calc:hover {
background-color: #219150;
}
#rental-property-calculator-container .results-section {
grid-column: 1 / -1;
background: #fff;
border: 1px solid #ddd;
border-radius: 6px;
padding: 20px;
margin-top: 20px;
display: none;
}
#rental-property-calculator-container .result-row {
display: flex;
justify-content: space-between;
padding: 10px 0;
border-bottom: 1px solid #eee;
}
#rental-property-calculator-container .result-row:last-child {
border-bottom: none;
}
#rental-property-calculator-container .result-label {
font-weight: 600;
color: #555;
}
#rental-property-calculator-container .result-value {
font-weight: 700;
color: #2c3e50;
}
#rental-property-calculator-container .highlight-result {
background-color: #f0f9f4;
padding: 15px;
border-radius: 5px;
margin-top: 5px;
margin-bottom: 5px;
}
#rental-property-calculator-container .highlight-result .result-value {
color: #27ae60;
font-size: 20px;
}
#rental-property-calculator-container .neg-cashflow {
color: #c0392b !important;
}
#rental-property-calculator-container article h2 {
color: #2c3e50;
border-bottom: 2px solid #3498db;
padding-bottom: 10px;
margin-top: 40px;
}
#rental-property-calculator-container article h3 {
color: #34495e;
margin-top: 30px;
}
#rental-property-calculator-container article ul {
padding-left: 20px;
}
#rental-property-calculator-container article li {
margin-bottom: 10px;
}
#rental-property-calculator-container .error-msg {
color: red;
font-size: 14px;
display: none;
grid-column: 1 / -1;
text-align: center;
}
function calculateRentalROI() {
// Get inputs
var price = parseFloat(document.getElementById('purchasePrice').value);
var closing = parseFloat(document.getElementById('closingCosts').value);
var downPrc = parseFloat(document.getElementById('downPaymentPrc').value);
var rate = parseFloat(document.getElementById('interestRate').value);
var term = parseFloat(document.getElementById('loanTerm').value);
var rent = parseFloat(document.getElementById('monthlyRent').value);
var tax = parseFloat(document.getElementById('annualTax').value);
var ins = parseFloat(document.getElementById('annualInsurance').value);
var hoa = parseFloat(document.getElementById('monthlyHOA').value);
var vacancyPrc = parseFloat(document.getElementById('vacancyRate').value);
// Validation
if (isNaN(price) || isNaN(closing) || isNaN(downPrc) || isNaN(rate) || isNaN(term) || isNaN(rent) || isNaN(tax) || isNaN(ins) || isNaN(hoa) || isNaN(vacancyPrc)) {
document.getElementById('calcError').style.display = 'block';
document.getElementById('resultsSection').style.display = 'none';
return;
} else {
document.getElementById('calcError').style.display = 'none';
}
// Calculations
var downPayment = price * (downPrc / 100);
var loanAmount = price – downPayment;
var initialInvestment = downPayment + closing;
// Mortgage P&I
var monthlyRate = (rate / 100) / 12;
var numPayments = term * 12;
var monthlyMortgage = 0;
if (rate === 0) {
monthlyMortgage = loanAmount / numPayments;
} else {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
}
// Monthly Expenses
var monthlyTax = tax / 12;
var monthlyIns = ins / 12;
var vacancyCost = rent * (vacancyPrc / 100);
var totalMonthlyExpenses = monthlyMortgage + monthlyTax + monthlyIns + hoa + vacancyCost;
// Cash Flow
var monthlyCashFlow = rent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// NOI (Net Operating Income) = Income – Operating Expenses (Exclude Mortgage)
var monthlyOperatingExpenses = monthlyTax + monthlyIns + hoa + vacancyCost;
var monthlyNOI = rent – monthlyOperatingExpenses;
var annualNOI = monthlyNOI * 12;
// ROI Metrics
var cashOnCash = (annualCashFlow / initialInvestment) * 100;
var capRate = (annualNOI / price) * 100;
// Display Results
document.getElementById('resInitialInvest').innerText = "$" + initialInvestment.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
document.getElementById('resMortgage').innerText = "$" + monthlyMortgage.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTotalExp').innerText = "$" + totalMonthlyExpenses.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resNOI').innerText = "$" + monthlyNOI.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
var cashFlowEl = document.getElementById('resCashFlow');
cashFlowEl.innerText = "$" + monthlyCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
if (monthlyCashFlow < 0) {
cashFlowEl.classList.add('neg-cashflow');
} else {
cashFlowEl.classList.remove('neg-cashflow');
}
var cocEl = document.getElementById('resCoC');
cocEl.innerText = cashOnCash.toFixed(2) + "%";
if (cashOnCash < 0) {
cocEl.classList.add('neg-cashflow');
} else {
cocEl.classList.remove('neg-cashflow');
}
document.getElementById('resCapRate').innerText = capRate.toFixed(2) + "%";
// Show results section
document.getElementById('resultsSection').style.display = 'block';
}
Understanding Rental Property ROI
Investing in real estate is one of the most popular ways to build long-term wealth. However, not every property is a good deal. To ensure your investment will be profitable, it is crucial to accurately calculate your expected returns before signing any contracts. This Rental Property Cash Flow & ROI Calculator helps investors analyze the financial performance of a potential rental property.
By inputting the purchase price, financing details, and projected expenses, you can determine if a property will generate positive cash flow or drain your resources.
Key Metrics Explained
1. Cash Flow
Cash flow is the net amount of cash moving into or out of your investment each month. It is calculated as:
Monthly Income (Rent) – Total Monthly Expenses (Mortgage + Taxes + Insurance + Repairs) = Cash Flow
Positive cash flow means the property pays for itself and generates profit. Negative cash flow implies you must pay out of pocket to keep the property running, which is generally risky unless the property is appreciating rapidly.
2. Cash on Cash Return (CoC ROI)
This is arguably the most important metric for rental investors. It measures the annual return on the actual cash you invested (down payment + closing costs), rather than the total loan amount.
Formula: (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100
For example, if you invest $50,000 cash and the property generates $5,000 in net cash flow per year, your Cash on Cash return is 10%.
3. Cap Rate (Capitalization Rate)
Cap rate measures the rate of return on a real estate investment property based on the income that the property is expected to generate. It excludes financing costs (mortgage payments) to allow for an "apples-to-apples" comparison between different properties regardless of how they are purchased (cash vs. loan).
Formula: (Net Operating Income / Current Market Value) x 100
How to Use This Calculator
- Purchase Details: Enter the asking price and estimated closing costs (usually 2-5% of the price).
- Loan Details: Input your down payment percentage, interest rate, and loan term (commonly 30 years).
- Income: Enter the total monthly rent you expect to collect.
- Expenses: Be realistic. Include property taxes, insurance, HOA fees, and a vacancy rate (money lost when the unit is empty). It's also wise to budget for maintenance (often included in the HOA field or added to expenses).
What is a Good ROI for Rental Property?
A "good" ROI is subjective and depends on your investment strategy and risk tolerance. However, many investors follow these general benchmarks:
- Cash Flow: Many investors aim for at least $100 – $200 per door in net profit per month.
- Cash on Cash Return: A return of 8-12% is often considered solid, as it beats the historical average of the stock market (S&P 500). Some aggressive investors target 15% or higher.
- Cap Rate: In high-demand areas, a 4-5% cap rate might be acceptable due to appreciation potential. In simpler markets, investors may look for 6-10%.
Common Mistakes to Avoid
The biggest mistake new investors make is underestimating expenses. Always account for vacancy (properties don't stay rented 365 days a year forever) and repairs (roofs, water heaters, and paint eventually need replacing). Using a calculator like this helps you factor in these hidden costs so you aren't surprised later.