Rental Property Cash Flow & ROI Calculator
.roi-calc-container {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 25px;
background: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
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margin-bottom: 25px;
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font-size: 16px;
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color: #2c3e50;
margin-top: 30px;
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Rental Property Cash Flow & ROI Calculator
Investment Analysis
Loan Amount:
–
Monthly Mortgage (P&I):
–
Total Monthly Expenses:
–
Monthly Cash Flow:
–
Annual Cash Flow:
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Cash on Cash Return (ROI):
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function calculateROI() {
// Get Inputs
var price = parseFloat(document.getElementById('purchasePrice').value);
var downPayment = parseFloat(document.getElementById('downPayment').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var years = parseFloat(document.getElementById('loanTerm').value);
var rent = parseFloat(document.getElementById('monthlyRent').value);
var tax = parseFloat(document.getElementById('annualTax').value);
var insurance = parseFloat(document.getElementById('annualInsurance').value);
var maintenance = parseFloat(document.getElementById('annualMaintenance').value);
// Validation
if (isNaN(price) || isNaN(downPayment) || isNaN(interestRate) || isNaN(years) || isNaN(rent)) {
alert("Please fill in all required fields with valid numbers.");
return;
}
// Set defaults for optional fields if empty
if (isNaN(tax)) tax = 0;
if (isNaN(insurance)) insurance = 0;
if (isNaN(maintenance)) maintenance = 0;
// Loan Calculations
var loanAmount = price – downPayment;
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = years * 12;
// Mortgage P&I Formula: M = P[r(1+r)^n]/[(1+r)^n-1]
var monthlyMortgage = 0;
if (monthlyRate > 0) {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else {
monthlyMortgage = loanAmount / numberOfPayments;
}
// Expense Calculations
var monthlyTax = tax / 12;
var monthlyInsurance = insurance / 12;
var monthlyMaintenance = maintenance / 12;
var totalMonthlyExpenses = monthlyMortgage + monthlyTax + monthlyInsurance + monthlyMaintenance;
// Cash Flow Calculations
var monthlyCashFlow = rent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// Cash on Cash Return = (Annual Cash Flow / Total Cash Invested) * 100
// Assuming Cash Invested is just Down Payment for simplicity (could add closing costs)
var cocReturn = 0;
if (downPayment > 0) {
cocReturn = (annualCashFlow / downPayment) * 100;
}
// Display Results
document.getElementById('results').style.display = 'block';
document.getElementById('resLoanAmount').innerText = formatCurrency(loanAmount);
document.getElementById('resMortgage').innerText = formatCurrency(monthlyMortgage);
document.getElementById('resTotalExp').innerText = formatCurrency(totalMonthlyExpenses);
var monthlyEl = document.getElementById('resMonthlyCash');
monthlyEl.innerText = formatCurrency(monthlyCashFlow);
monthlyEl.style.color = monthlyCashFlow >= 0 ? '#27ae60' : '#c0392b';
var annualEl = document.getElementById('resAnnualCash');
annualEl.innerText = formatCurrency(annualCashFlow);
annualEl.style.color = annualCashFlow >= 0 ? '#27ae60' : '#c0392b';
var cocEl = document.getElementById('resCoC');
cocEl.innerText = cocReturn.toFixed(2) + '%';
cocEl.style.color = cocReturn >= 0 ? '#27ae60' : '#c0392b';
}
function formatCurrency(num) {
return '$' + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
Understanding Rental Property Cash Flow
Investing in real estate is one of the most reliable ways to build wealth, but not every property is a good deal. To ensure profitability, investors must accurately calculate their Cash Flow and Cash on Cash Return (ROI). This calculator helps you determine if a potential rental property will put money in your pocket each month or drain your resources.
What is Monthly Cash Flow?
Monthly cash flow is the net income left over after all operating expenses and debt service payments have been paid. A positive cash flow means the property generates profit, while negative cash flow implies you are losing money every month to hold the asset.
The formula is simple:
- Gross Income: Primarily monthly rent, but can include parking fees, laundry income, etc.
- Expenses: Mortgage (Principal & Interest), Taxes, Insurance, HOA fees, Maintenance reserves, and Vacancy allowances.
- Cash Flow = Gross Income – Total Expenses
Why Cash on Cash Return Matters
While cash flow tells you the dollar amount you earn, Cash on Cash (CoC) Return measures the efficiency of your investment. It calculates the annual return you are generating on the actual cash you invested (Down Payment + Closing Costs).
For example, if you invest $50,000 as a down payment and the property generates $5,000 in annual positive cash flow, your CoC return is 10%. This metric allows you to compare real estate against other investments like stocks or bonds.
How to Use This Calculator
To get the most accurate results, ensure you have realistic estimates for all expenses:
- Purchase Price & Down Payment: Determines your loan amount and leverage.
- Interest Rate: A crucial factor; even a 1% difference can significantly impact monthly cash flow.
- Operating Expenses: Don't forget to account for annual taxes, insurance premiums, and a maintenance budget (typically 1-2% of the property value annually).
Interpreting Your Results
A "good" ROI depends on your strategy. Cash flow investors often look for a CoC return of 8-12%, while appreciation investors might accept lower immediate returns in exchange for long-term value growth. If your calculation shows a negative percentage, you may need to negotiate a lower purchase price, increase the down payment to lower the mortgage, or find a way to increase the rental income.