.roi-calc-container {
max-width: 800px;
margin: 20px auto;
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
border: 1px solid #e0e0e0;
border-radius: 8px;
background: #ffffff;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
padding: 0;
overflow: hidden;
}
.roi-calc-header {
background: #2c3e50;
color: #fff;
padding: 20px;
text-align: center;
}
.roi-calc-header h2 {
margin: 0;
font-size: 24px;
}
.roi-calc-body {
padding: 30px;
display: flex;
flex-wrap: wrap;
gap: 30px;
}
.roi-input-section {
flex: 1;
min-width: 300px;
}
.roi-result-section {
flex: 1;
min-width: 300px;
background: #f8f9fa;
border-radius: 8px;
padding: 20px;
border: 1px solid #dee2e6;
}
.form-group {
margin-bottom: 15px;
}
.form-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #333;
font-size: 14px;
}
.input-wrapper {
position: relative;
}
.input-wrapper input {
width: 100%;
padding: 10px 10px 10px 12px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.input-wrapper span {
position: absolute;
right: 10px;
top: 50%;
transform: translateY(-50%);
color: #666;
font-size: 14px;
}
.calc-btn {
width: 100%;
background: #27ae60;
color: white;
border: none;
padding: 15px;
font-size: 18px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
transition: background 0.3s;
margin-top: 10px;
}
.calc-btn:hover {
background: #219150;
}
.result-row {
display: flex;
justify-content: space-between;
padding: 12px 0;
border-bottom: 1px solid #e0e0e0;
}
.result-row:last-child {
border-bottom: none;
}
.result-label {
color: #555;
font-size: 15px;
}
.result-value {
font-weight: 700;
color: #2c3e50;
font-size: 16px;
}
.highlight-result {
background: #e8f5e9;
padding: 15px;
border-radius: 4px;
margin-top: 15px;
border: 1px solid #c8e6c9;
}
.highlight-result .result-label {
font-size: 16px;
color: #2e7d32;
}
.highlight-result .result-value {
font-size: 22px;
color: #2e7d32;
}
.roi-article {
max-width: 800px;
margin: 40px auto;
padding: 0 20px;
color: #333;
line-height: 1.6;
}
.roi-article h2 {
color: #2c3e50;
margin-top: 30px;
}
.roi-article h3 {
color: #2980b9;
margin-top: 20px;
}
.roi-article p {
margin-bottom: 15px;
}
.roi-article ul {
margin-bottom: 20px;
}
.roi-article li {
margin-bottom: 8px;
}
@media (max-width: 600px) {
.roi-calc-body {
flex-direction: column;
}
}
Investment Performance
Monthly Principal & Interest:
$0.00
Total Monthly Expenses:
$0.00
Cash on Cash Return:
0.00%
Net Operating Income (NOI):
$0.00
Cap Rate:
0.00%
function calculateRentalROI() {
// Get Inputs
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 interestRate = parseFloat(document.getElementById('interestRate').value) || 0;
var loanTerm = parseFloat(document.getElementById('loanTerm').value) || 0;
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var annualTaxes = parseFloat(document.getElementById('annualTaxes').value) || 0;
var annualInsurance = parseFloat(document.getElementById('annualInsurance').value) || 0;
var maintenance = parseFloat(document.getElementById('maintenance').value) || 0;
var vacancyRate = parseFloat(document.getElementById('vacancyRate').value) || 0;
// 1. Calculate Mortgage Payment
var loanAmount = purchasePrice – downPayment;
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
var monthlyMortgage = 0;
if (loanAmount > 0 && interestRate > 0) {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else if (loanAmount > 0 && interestRate === 0) {
monthlyMortgage = loanAmount / numberOfPayments;
}
// 2. Calculate Operating Expenses
// Vacancy is a percentage of gross rent
var monthlyVacancyCost = monthlyRent * (vacancyRate / 100);
var monthlyTax = annualTaxes / 12;
var monthlyInsurance = annualInsurance / 12;
var monthlyMaintenance = maintenance / 12;
// Total Operating Expenses (excluding mortgage)
var totalMonthlyOperatingExpenses = monthlyTax + monthlyInsurance + monthlyMaintenance + monthlyVacancyCost;
// Total Expenses (including mortgage)
var totalMonthlyExpenses = totalMonthlyOperatingExpenses + monthlyMortgage;
// 3. Calculate Cash Flow
var monthlyCashFlow = monthlyRent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// 4. Calculate Net Operating Income (NOI)
// NOI = Annual Income – Operating Expenses (Mortgage is NOT an operating expense for NOI)
var annualGrossIncome = monthlyRent * 12;
var annualOperatingExpenses = totalMonthlyOperatingExpenses * 12;
var noi = annualGrossIncome – annualOperatingExpenses;
// 5. Calculate Metrics
var totalCashInvested = downPayment + closingCosts;
var cashOnCashReturn = 0;
if (totalCashInvested > 0) {
cashOnCashReturn = (annualCashFlow / totalCashInvested) * 100;
}
var capRate = 0;
if (purchasePrice > 0) {
capRate = (noi / purchasePrice) * 100;
}
// 6. Update UI
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
document.getElementById('resMortgage').innerText = formatter.format(monthlyMortgage);
document.getElementById('resExpenses').innerText = formatter.format(totalMonthlyExpenses);
document.getElementById('resCashFlow').innerText = formatter.format(monthlyCashFlow);
document.getElementById('resNOI').innerText = formatter.format(noi); // Annual NOI
document.getElementById('resCoC').innerText = cashOnCashReturn.toFixed(2) + "%";
document.getElementById('resCapRate').innerText = capRate.toFixed(2) + "%";
// Style Cash Flow Color
var cashFlowEl = document.getElementById('resCashFlow');
if (monthlyCashFlow >= 0) {
cashFlowEl.style.color = '#2e7d32';
} else {
cashFlowEl.style.color = '#c62828';
}
}
Understanding Your Rental Property ROI
Investing in real estate is one of the most reliable ways to build wealth, but not every property is a good deal. Using a Rental Property ROI Calculator is essential to separate emotional decisions from mathematical facts. This tool breaks down the complex costs associated with purchasing and managing a rental to give you a clear picture of your potential return on investment.
What is Cash on Cash Return?
Cash on Cash (CoC) Return is arguably the most important metric for rental investors. It measures the annual cash income earned on the property against the amount of cash you actually invested (down payment + closing costs). Unlike a simple ROI calculation, CoC focuses specifically on the efficiency of the capital you deployed.
- A "Good" CoC Return: Generally, investors look for 8% to 12% in the current market, though this varies by location and strategy.
- Why it matters: It tells you how hard your money is working. If your CoC is 2%, your money might be better off in a high-yield savings account.
Understanding Cap Rate (Capitalization Rate)
The Cap Rate measures a property's natural rate of return assuming you paid all cash for it. It is calculated by dividing the Net Operating Income (NOI) by the Purchase Price. This metric helps you compare the profitability of similar properties regardless of how they are financed.
Formula: Cap Rate = Net Operating Income / Current Market Value
How to Improve Your ROI
If the numbers in the calculator aren't looking green, consider these levers:
- Reduce Vacancy: A 5% vacancy rate is standard, but excellent property management can lower this.
- Increase Rent: Small cosmetic updates can often justify a higher monthly rent.
- Lower Operating Costs: Shop around for cheaper insurance or handle minor maintenance tasks yourself.
Key Inputs Explained
- Vacancy Rate: The percentage of time the property sits empty. Always account for at least 5-8% to be safe.
- Maintenance: Even new homes break. Budgeting 1% of the property value annually for repairs is a safe rule of thumb.
- Closing Costs: Don't forget the fees to buy the home, which usually range from 2% to 5% of the purchase price.