#rental-property-calculator-container {
font-family: 'Segoe UI', Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
background: #fff;
padding: 20px;
border-radius: 8px;
box-shadow: 0 2px 10px rgba(0,0,0,0.05);
}
.calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.calc-grid {
grid-template-columns: 1fr;
}
}
.calc-input-group {
margin-bottom: 15px;
}
.calc-input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #333;
font-size: 0.9em;
}
.calc-input-group input, .calc-input-group select {
width: 100%;
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.calc-input-group input:focus {
border-color: #0073aa;
outline: none;
}
.section-title {
grid-column: 1 / -1;
font-size: 1.1em;
color: #0073aa;
margin-top: 10px;
margin-bottom: 10px;
border-bottom: 1px solid #eee;
padding-bottom: 5px;
}
button.calc-btn {
grid-column: 1 / -1;
background-color: #0073aa;
color: white;
border: none;
padding: 15px;
font-size: 18px;
border-radius: 4px;
cursor: pointer;
transition: background 0.3s;
margin-top: 10px;
}
button.calc-btn:hover {
background-color: #005177;
}
#calc-results {
margin-top: 30px;
padding: 20px;
background-color: #f9f9f9;
border-radius: 6px;
border-left: 5px solid #0073aa;
display: none;
}
.result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
padding-bottom: 10px;
border-bottom: 1px solid #eee;
}
.result-row:last-child {
border-bottom: none;
}
.result-label {
color: #555;
font-weight: 500;
}
.result-value {
font-weight: 700;
color: #222;
}
.highlight-result {
color: #0073aa;
font-size: 1.2em;
}
.seo-content {
margin-top: 40px;
line-height: 1.6;
color: #333;
}
.seo-content h2 {
color: #2c3e50;
margin-top: 30px;
}
.seo-content h3 {
color: #34495e;
font-size: 1.2em;
}
.seo-content p {
margin-bottom: 15px;
}
.seo-content ul {
margin-bottom: 15px;
padding-left: 20px;
}
.seo-content li {
margin-bottom: 8px;
}
Understanding Rental Property Investment Metrics
Investing in real estate is a powerful way to build wealth, but simply buying a property and renting it out doesn't guarantee a profit. To succeed, investors rely on specific financial metrics to evaluate the performance of a rental asset. This calculator helps you determine three critical numbers: Cash Flow, Cap Rate, and Cash on Cash Return.
What is Cash Flow?
Cash flow is the net amount of cash moving in and out of your investment each month. It is calculated by taking your total rental income and subtracting all expenses, including the mortgage payment (Principal and Interest), taxes, insurance, and maintenance costs.
Positive Cash Flow: This means the property is generating income after all bills are paid. This is the primary goal for buy-and-hold investors.
Capitalization Rate (Cap Rate)
The Cap Rate measures the natural rate of return on the property independent of debt. It is calculated by dividing the Net Operating Income (NOI) by the property's purchase price. The NOI is your annual income minus operating expenses (excluding mortgage payments).
- Formula: (Net Operating Income / Purchase Price) × 100
- Usage: Use Cap Rate to compare the profitability of similar properties in the same market, regardless of how they are financed.
Cash on Cash Return (CoC)
Cash on Cash Return is often considered the most important metric for investors using leverage (loans). It measures the annual return on the actual cash you invested (down payment + closing costs).
- Formula: (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
- Why it matters: It tells you how hard your money is working. If you put $50,000 into a deal and get $5,000 back in positive cash flow per year, your CoC is 10%.
How to Use This Calculator
To get the most accurate results, ensure you estimate your operating expenses conservatively. Include property taxes, landlord insurance, vacancy reserves (typically 5-10% of rent), and maintenance costs. By inputting accurate loan terms and income projections, you can decide if a property meets your investment criteria before making an offer.
function calculateRentalROI() {
// Get Input Values
var price = parseFloat(document.getElementById('purchasePrice').value);
var closingCosts = parseFloat(document.getElementById('closingCosts').value);
var downPercent = parseFloat(document.getElementById('downPaymentPercent').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var loanTermYears = parseInt(document.getElementById('loanTerm').value);
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value);
var monthlyExpenses = parseFloat(document.getElementById('otherExpenses').value);
// Validation
if (isNaN(price) || isNaN(monthlyRent) || isNaN(monthlyExpenses)) {
alert("Please enter valid numbers for Price, Rent, and Expenses.");
return;
}
// Calculations
var downPaymentAmount = price * (downPercent / 100);
var loanAmount = price – downPaymentAmount;
var totalCashInvested = downPaymentAmount + closingCosts;
// Mortgage Calculation (Principal & Interest)
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = loanTermYears * 12;
var monthlyMortgage = 0;
if (interestRate === 0) {
monthlyMortgage = loanAmount / numberOfPayments;
} else {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
}
// Cash Flow Calculations
var totalMonthlyOutflow = monthlyMortgage + monthlyExpenses;
var monthlyCashFlow = monthlyRent – totalMonthlyOutflow;
var annualCashFlow = monthlyCashFlow * 12;
// NOI Calculation (Income – Operating Expenses, excluding debt service)
var monthlyNOI = monthlyRent – monthlyExpenses;
var annualNOI = monthlyNOI * 12;
// ROI Metrics
var capRate = (annualNOI / price) * 100;
var cashOnCash = (annualCashFlow / totalCashInvested) * 100;
// Display Results
document.getElementById('res-cash-invested').innerHTML = "$" + totalCashInvested.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res-mortgage').innerHTML = "$" + monthlyMortgage.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
var cashFlowElem = document.getElementById('res-cashflow');
cashFlowElem.innerHTML = "$" + monthlyCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
cashFlowElem.style.color = monthlyCashFlow >= 0 ? "#27ae60" : "#c0392b";
document.getElementById('res-noi').innerHTML = "$" + annualNOI.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res-cap-rate').innerHTML = capRate.toFixed(2) + "%";
var cocElem = document.getElementById('res-coc');
cocElem.innerHTML = cashOnCash.toFixed(2) + "%";
cocElem.style.color = cashOnCash >= 0 ? "#27ae60" : "#c0392b";
// Show results div
document.getElementById('calc-results').style.display = "block";
}