Monthly Interest Rate to Annual Calculator

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Rental Property ROI Calculator

Analyze cash flow, cap rate, and cash-on-cash return for your real estate investment.

(Taxes, Ins, HOA, Repairs)

Investment Analysis

Monthly Cash Flow
$0.00
Cash on Cash ROI
0.00%
Cap Rate
0.00%
Monthly Mortgage
$0.00

Understanding Rental Property Metrics

Successful real estate investing requires more than just finding a nice property; it demands rigorous financial analysis. This Rental Property ROI Calculator helps investors determine if a property will generate positive cash flow and provide a healthy return on investment.

What is Monthly Cash Flow?

Cash flow is the profit you take home each month after all operating expenses and debt service (mortgage payments) have been paid.

Formula: Rental Income – (Operating Expenses + Mortgage Payment)

A positive cash flow means the property pays for itself and puts money in your pocket. Investors typically look for at least $100-$300 per unit in net monthly cash flow.

Cash on Cash ROI Explained

Cash on Cash Return on Investment (CoC ROI) measures the annual return you are making on the actual cash you invested (Down Payment + Closing Costs + Rehab Costs). Unlike a standard ROI, it ignores the total loan amount and focuses on the efficiency of your specific capital.

For example, if you invest $50,000 cash and the property generates $5,000 in net annual cash flow, your Cash on Cash ROI is 10%. This is a critical metric for comparing real estate performance against stocks or bonds.

Understanding Cap Rate

The Capitalization Rate (Cap Rate) indicates the rate of return on a real estate investment property based on the income that the property is expected to generate. It is calculated by dividing the Net Operating Income (NOI) by the property's current market value.

Note: Cap Rate does not account for mortgage financing. It is a measure of the property's raw profitability, allowing you to compare properties regardless of how they are financed.

Key Factors Affecting Profitability

  • Vacancy Rates: Always budget for periods where the property sits empty.
  • Maintenance: Setting aside 10-15% of rent for repairs is a prudent safety net.
  • Interest Rates: Even a 1% difference in mortgage rates can significantly impact monthly cash flow.
function calculateRentalROI() { // 1. Get Input Values var price = parseFloat(document.getElementById('rpPrice').value); var downPayment = parseFloat(document.getElementById('rpDownPayment').value); var interestRate = parseFloat(document.getElementById('rpInterestRate').value); var termYears = parseFloat(document.getElementById('rpLoanTerm').value); var monthlyRent = parseFloat(document.getElementById('rpRent').value); var monthlyExpenses = parseFloat(document.getElementById('rpExpenses').value); // 2. Validation if (isNaN(price) || isNaN(downPayment) || isNaN(interestRate) || isNaN(termYears) || isNaN(monthlyRent) || isNaN(monthlyExpenses)) { alert("Please enter valid numbers in all fields."); return; } if (price <= 0 || termYears Rent – Operating Expenses (Excluding Mortgage) var annualNOI = (monthlyRent – monthlyExpenses) * 12; // Cash on Cash ROI = Annual Cash Flow / Cash Invested (Down Payment) // Avoid division by zero if down payment is 0 var cocROI = 0; if (downPayment > 0) { cocROI = (annualCashFlow / downPayment) * 100; } else { // If 0 down, ROI is technically infinite if cash flow is positive cocROI = 0; } // Cap Rate = Annual NOI / Purchase Price var capRate = (annualNOI / price) * 100; // 5. Display Results document.getElementById('rpResultBox').style.display = 'block'; // Formatting currency var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', }); // Update HTML elements var cashFlowEl = document.getElementById('rpResCashFlow'); cashFlowEl.innerText = formatter.format(monthlyCashFlow); // Style Cash Flow color if (monthlyCashFlow >= 0) { cashFlowEl.classList.remove('negative'); cashFlowEl.classList.add('positive'); } else { cashFlowEl.classList.remove('positive'); cashFlowEl.classList.add('negative'); } document.getElementById('rpResCoc').innerText = cocROI.toFixed(2) + '%'; document.getElementById('rpResCapRate').innerText = capRate.toFixed(2) + '%'; document.getElementById('rpResMortgage').innerText = formatter.format(monthlyMortgage); }

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