body {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
line-height: 1.6;
color: #333;
margin: 0;
padding: 20px;
background-color: #f4f7f6;
}
.calculator-wrapper {
max-width: 800px;
margin: 0 auto;
background: #fff;
border-radius: 8px;
box-shadow: 0 4px 15px rgba(0,0,0,0.1);
padding: 30px;
}
h1 {
text-align: center;
color: #2c3e50;
margin-bottom: 30px;
}
.calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.calc-grid {
grid-template-columns: 1fr;
}
}
.section-title {
grid-column: 1 / -1;
font-size: 1.2em;
font-weight: bold;
color: #3498db;
border-bottom: 2px solid #ecf0f1;
padding-bottom: 10px;
margin-top: 20px;
margin-bottom: 10px;
}
.input-group {
margin-bottom: 15px;
}
label {
display: block;
margin-bottom: 5px;
font-weight: 600;
font-size: 0.9em;
}
input {
width: 100%;
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
input:focus {
border-color: #3498db;
outline: none;
}
.btn-container {
grid-column: 1 / -1;
text-align: center;
margin-top: 20px;
}
button.calc-btn {
background-color: #2ecc71;
color: white;
border: none;
padding: 15px 40px;
font-size: 18px;
font-weight: bold;
border-radius: 5px;
cursor: pointer;
transition: background 0.3s;
}
button.calc-btn:hover {
background-color: #27ae60;
}
.results-container {
grid-column: 1 / -1;
background-color: #f8f9fa;
border: 1px solid #e9ecef;
border-radius: 6px;
padding: 20px;
margin-top: 30px;
display: none;
}
.result-row {
display: flex;
justify-content: space-between;
padding: 10px 0;
border-bottom: 1px solid #ddd;
}
.result-row:last-child {
border-bottom: none;
}
.result-label {
font-weight: 600;
color: #555;
}
.result-value {
font-weight: bold;
color: #2c3e50;
font-size: 1.1em;
}
.positive {
color: #27ae60;
}
.negative {
color: #c0392b;
}
.highlight-result {
background-color: #e8f6f3;
padding: 15px;
border-radius: 5px;
margin-top: 10px;
text-align: center;
}
.highlight-result .result-value {
font-size: 2em;
display: block;
}
.content-section {
max-width: 800px;
margin: 40px auto;
padding: 20px;
background: #fff;
}
.content-section h2 {
color: #2c3e50;
margin-top: 30px;
}
.content-section p {
margin-bottom: 15px;
color: #4a4a4a;
}
.content-section ul {
margin-bottom: 20px;
padding-left: 20px;
}
.content-section li {
margin-bottom: 10px;
}
Understanding Rental Property ROI
Investing in real estate is one of the most reliable ways to build wealth, but simply buying a property and renting it out doesn't guarantee a profit. To succeed, investors must analyze the numbers with precision. This Rental Property Cash Flow & ROI Calculator helps you determine the viability of a potential investment deal.
What is Cash on Cash Return?
Cash on Cash Return (CoC) is arguably the most important metric for rental property investors. Unlike basic ROI, which might look at the total value of the asset, CoC specifically measures the annual pre-tax cash flow relative to the total amount of cash invested.
The formula is:
Cash on Cash Return = (Annual Net Cash Flow / Total Cash Invested) × 100
Key Inputs Explained
- Purchase Price: The agreed-upon sales price of the property.
- Rehab Costs: Any immediate repairs or renovations needed to make the property rent-ready.
- Vacancy Rate: Properties are rarely occupied 100% of the time. A standard conservative estimate is 5% to 8% (roughly 2-4 weeks per year).
- Maintenance & CapEx: Money set aside for repairs (leaky faucets) and capital expenditures (new roof, HVAC). A common rule of thumb is saving 10-15% of rent.
Interpreting Your Results
Positive Cash Flow: If your Monthly Cash Flow is green, the property generates income after all expenses (including the mortgage) are paid. This is the goal for buy-and-hold investors.
Cap Rate (Capitalization Rate): This metric evaluates the profitability of a property independent of its financing. It is calculated by dividing the Net Operating Income (NOI) by the property value. It helps compare properties as if they were bought with all cash.
Example Scenario
Imagine purchasing a single-family home for $200,000 with 20% down ($40,000). You spend another $5,000 on closing costs. The mortgage is roughly $1,000/month. If the property rents for $1,800/month and your other expenses (tax, insurance, maintenance) are $500/month, your cash flow is $300/month ($3,600/year). Your total cash invested is $45,000. Your Cash on Cash return would be roughly 8%.
Use the calculator above to run your own scenarios and ensure your next real estate purchase is a profitable one.
function calculateRentalROI() {
// 1. Get Input Values
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value) || 0;
var downPaymentPercent = parseFloat(document.getElementById('downPaymentPercent').value) || 0;
var closingCosts = parseFloat(document.getElementById('closingCosts').value) || 0;
var rehabCosts = parseFloat(document.getElementById('rehabCosts').value) || 0;
var interestRate = parseFloat(document.getElementById('interestRate').value) || 0;
var loanTerm = parseFloat(document.getElementById('loanTerm').value) || 0;
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var vacancyRate = parseFloat(document.getElementById('vacancyRate').value) || 0;
var annualPropertyTax = parseFloat(document.getElementById('propertyTax').value) || 0;
var annualInsurance = parseFloat(document.getElementById('insurance').value) || 0;
var hoaFees = parseFloat(document.getElementById('hoaFees').value) || 0;
var maintenancePercent = parseFloat(document.getElementById('maintenance').value) || 0;
var managementFeePercent = parseFloat(document.getElementById('managementFee').value) || 0;
// 2. Validate essential inputs to avoid division by zero
if (purchasePrice <= 0 || loanTerm 0) {
cashOnCashReturn = (annualCashFlow / totalInitialInvestment) * 100;
}
// Cap Rate = (Net Operating Income / Current Market Value)
// NOI = Effective Income – Operating Expenses (excluding mortgage)
var annualNOI = (effectiveGrossIncome – totalOperatingExpensesMonthly) * 12;
var capRate = (annualNOI / purchasePrice) * 100;
// 8. Update DOM
document.getElementById('resultsBox').style.display = 'block';
// Helper formatting function
function formatMoney(num) {
return '$' + num.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
}
function formatPercent(num) {
return num.toFixed(2) + '%';
}
// Set colors for positive/negative flow
var cashFlowEl = document.getElementById('resCashFlow');
cashFlowEl.innerText = formatMoney(monthlyCashFlow);
cashFlowEl.className = monthlyCashFlow >= 0 ? "result-value positive" : "result-value negative";
var cocEl = document.getElementById('resCoc');
cocEl.innerText = formatPercent(cashOnCashReturn);
cocEl.className = cashOnCashReturn >= 0 ? "result-value positive" : "result-value negative";
document.getElementById('resCapRate').innerText = formatPercent(capRate);
document.getElementById('resInitialInvest').innerText = formatMoney(totalInitialInvestment);
document.getElementById('resMortgage').innerText = formatMoney(monthlyMortgage);
document.getElementById('resTotalExp').innerText = formatMoney(totalMonthlyExpenses);
document.getElementById('resNetIncome').innerText = formatMoney(effectiveGrossIncome);
}