.rp-calculator-wrapper {
max-width: 800px;
margin: 0 auto;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
color: #333;
background: #fff;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 20px;
box-shadow: 0 2px 10px rgba(0,0,0,0.05);
}
.rp-calc-title {
text-align: center;
color: #2c3e50;
margin-bottom: 25px;
font-size: 24px;
}
.rp-input-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.rp-input-grid {
grid-template-columns: 1fr;
}
}
.rp-input-group {
display: flex;
flex-direction: column;
}
.rp-input-group label {
font-size: 14px;
font-weight: 600;
margin-bottom: 5px;
color: #555;
}
.rp-input-group input {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
transition: border-color 0.3s;
}
.rp-input-group input:focus {
border-color: #3498db;
outline: none;
}
.rp-section-header {
grid-column: 1 / -1;
font-size: 18px;
color: #2c3e50;
border-bottom: 2px solid #f0f0f0;
padding-bottom: 10px;
margin-top: 10px;
margin-bottom: 10px;
}
.rp-btn-container {
grid-column: 1 / -1;
text-align: center;
margin-top: 20px;
}
.rp-calc-btn {
background-color: #27ae60;
color: white;
border: none;
padding: 15px 40px;
font-size: 18px;
font-weight: bold;
border-radius: 5px;
cursor: pointer;
transition: background-color 0.2s;
}
.rp-calc-btn:hover {
background-color: #219150;
}
.rp-results-container {
margin-top: 30px;
background-color: #f9fbfd;
border: 1px solid #dce4ec;
border-radius: 8px;
padding: 20px;
display: none; /* Hidden by default */
}
.rp-results-grid {
display: grid;
grid-template-columns: 1fr 1fr 1fr;
gap: 15px;
}
@media (max-width: 700px) {
.rp-results-grid {
grid-template-columns: 1fr;
}
}
.rp-result-card {
background: white;
padding: 15px;
border-radius: 6px;
box-shadow: 0 1px 3px rgba(0,0,0,0.1);
text-align: center;
}
.rp-result-card.highlight {
background-color: #e8f8f5;
border: 1px solid #a3e4d7;
}
.rp-result-label {
font-size: 13px;
color: #7f8c8d;
text-transform: uppercase;
letter-spacing: 0.5px;
margin-bottom: 5px;
}
.rp-result-value {
font-size: 20px;
font-weight: 800;
color: #2c3e50;
}
.rp-result-value.positive { color: #27ae60; }
.rp-result-value.negative { color: #c0392b; }
.rp-article-content {
max-width: 800px;
margin: 40px auto 0;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
line-height: 1.6;
color: #444;
}
.rp-article-content h2 { color: #2c3e50; margin-top: 30px; }
.rp-article-content h3 { color: #34495e; margin-top: 20px; }
.rp-article-content p { margin-bottom: 15px; }
.rp-article-content ul { margin-bottom: 15px; padding-left: 20px; }
.rp-article-content li { margin-bottom: 8px; }
Rental Property ROI Calculator
Analysis Results
Cash on Cash Return
0.00%
Understanding Your 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 rigorously. This Rental Property ROI Calculator helps you determine the viability of a potential investment by breaking down cash flow, capitalization rate (Cap Rate), and Cash on Cash (CoC) return.
Key Metrics Explained
1. Monthly Cash Flow
This is the net amount of money left in your pocket each month after all operating expenses and mortgage payments have been made. Positive cash flow is essential for a sustainable long-term investment.
Formula: Rental Income – (Mortgage + Taxes + Insurance + HOA + Vacancy + Maintenance)
2. Cash on Cash Return (CoC)
Perhaps the most important metric for leveraged investors, CoC measures the annual return on the actual cash you invested (down payment, closing costs, and rehab costs), rather than the total price of the property. It tells you how hard your specific dollars are working. A CoC return of 8-12% is often considered a solid target for residential rentals.
3. Capitalization Rate (Cap Rate)
The Cap Rate measures the natural rate of return of the property assuming you bought it with all cash. It allows you to compare the profitability of the property itself, independent of your loan terms. It is calculated by dividing the Net Operating Income (NOI) by the Purchase Price.
How to Estimate Expenses
- Vacancy Rate: Always budget for vacancy. A standard rate is 5-8%, which accounts for the weeks the property sits empty between tenants.
- Maintenance & CapEx: Even if the house is new, things break. Budgeting 5-10% of the rent for repairs ensures you have funds ready for a new water heater or roof repairs.
- Property Management: If you hire a manager, add 8-10% to your expenses (add this to the HOA/Misc field in the calculator).
Use this calculator to stress-test your deals. What happens to your Cash Flow if interest rates rise by 1%? What if the rent is $100 lower than expected? Successful investors run these scenarios before making an offer.
function calculateRentalROI() {
// 1. Get Input Values
var price = parseFloat(document.getElementById('rpPrice').value);
var downPaymentPercent = parseFloat(document.getElementById('rpDownPayment').value);
var interestRate = parseFloat(document.getElementById('rpInterest').value);
var termYears = parseFloat(document.getElementById('rpTerm').value);
var closingCosts = parseFloat(document.getElementById('rpClosingCosts').value);
var rehabCosts = parseFloat(document.getElementById('rpRehab').value);
var monthlyRent = parseFloat(document.getElementById('rpRent').value);
var annualTax = parseFloat(document.getElementById('rpPropTax').value);
var annualInsurance = parseFloat(document.getElementById('rpInsurance').value);
var monthlyHoa = parseFloat(document.getElementById('rpHoa').value);
var vacancyRate = parseFloat(document.getElementById('rpVacancy').value);
var maintenanceRate = parseFloat(document.getElementById('rpMaintenance').value);
// 2. Validate Inputs
if (isNaN(price) || isNaN(monthlyRent) || isNaN(downPaymentPercent)) {
alert("Please enter valid numbers for Price, Down Payment, and Rent.");
return;
}
// Handle defaults for zeros to avoid NaN in calculations
if (isNaN(closingCosts)) closingCosts = 0;
if (isNaN(rehabCosts)) rehabCosts = 0;
if (isNaN(monthlyHoa)) monthlyHoa = 0;
if (isNaN(vacancyRate)) vacancyRate = 0;
if (isNaN(maintenanceRate)) maintenanceRate = 0;
// 3. Perform Calculations
// Loan Calculation
var downPaymentAmount = price * (downPaymentPercent / 100);
var loanAmount = price – downPaymentAmount;
var monthlyRate = interestRate / 100 / 12;
var numPayments = termYears * 12;
var monthlyMortgage = 0;
if (interestRate > 0 && loanAmount > 0) {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
} else if (loanAmount > 0) {
monthlyMortgage = loanAmount / numPayments;
}
// Monthly Expenses Breakdown
var monthlyTax = annualTax / 12;
var monthlyInsurance = annualInsurance / 12;
var monthlyVacancyCost = monthlyRent * (vacancyRate / 100);
var monthlyMaintenanceCost = monthlyRent * (maintenanceRate / 100);
var totalMonthlyOperatingExpenses = monthlyTax + monthlyInsurance + monthlyHoa + monthlyVacancyCost + monthlyMaintenanceCost;
var totalMonthlyExpenses = totalMonthlyOperatingExpenses + monthlyMortgage;
// Cash Flow
var monthlyCashFlow = monthlyRent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// Net Operating Income (NOI) = Income – Operating Expenses (Excluding Debt Service)
var annualNOI = (monthlyRent * 12) – (totalMonthlyOperatingExpenses * 12);
// Total Cash Invested
var totalCashInvested = downPaymentAmount + closingCosts + rehabCosts;
// Returns
var capRate = 0;
if (price > 0) {
capRate = (annualNOI / price) * 100;
}
var cashOnCash = 0;
if (totalCashInvested > 0) {
cashOnCash = (annualCashFlow / totalCashInvested) * 100;
}
// 4. Update UI
document.getElementById('rpResults').style.display = 'block';
// Helper function to format currency
var fmtMoney = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' });
document.getElementById('resCashFlow').innerHTML = fmtMoney.format(monthlyCashFlow);
document.getElementById('resMortgage').innerHTML = fmtMoney.format(monthlyMortgage);
document.getElementById('resCashNeeded').innerHTML = fmtMoney.format(totalCashInvested);
document.getElementById('resNOI').innerHTML = fmtMoney.format(annualNOI);
document.getElementById('resCoC').innerHTML = cashOnCash.toFixed(2) + "%";
document.getElementById('resCapRate').innerHTML = capRate.toFixed(2) + "%";
// Styling for positive/negative cashflow
var cfEl = document.getElementById('resCashFlow');
if(monthlyCashFlow >= 0) {
cfEl.classList.remove('negative');
cfEl.classList.add('positive');
} else {
cfEl.classList.remove('positive');
cfEl.classList.add('negative');
}
}