#rental-roi-calculator-wrapper h2 {
color: #2c3e50;
text-align: center;
margin-bottom: 25px;
font-size: 28px;
}
.rpc-row {
display: flex;
flex-wrap: wrap;
gap: 20px;
margin-bottom: 20px;
}
.rpc-col {
flex: 1;
min-width: 250px;
}
.rpc-input-group {
margin-bottom: 15px;
}
.rpc-input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #555;
font-size: 14px;
}
.rpc-input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.rpc-input-group input:focus {
border-color: #3498db;
outline: none;
box-shadow: 0 0 5px rgba(52,152,219,0.3);
}
.rpc-btn {
width: 100%;
padding: 15px;
background-color: #27ae60;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background 0.3s;
margin-top: 10px;
}
.rpc-btn:hover {
background-color: #219150;
}
#rpc-results {
margin-top: 30px;
background-color: #f8f9fa;
border: 1px solid #e9ecef;
border-radius: 6px;
padding: 20px;
display: none;
}
.rpc-result-grid {
display: grid;
grid-template-columns: repeat(auto-fit, minmax(200px, 1fr));
gap: 20px;
}
.rpc-result-item {
text-align: center;
padding: 10px;
background: #fff;
border-radius: 4px;
box-shadow: 0 2px 4px rgba(0,0,0,0.05);
}
.rpc-result-label {
display: block;
font-size: 13px;
color: #7f8c8d;
text-transform: uppercase;
letter-spacing: 1px;
margin-bottom: 5px;
}
.rpc-result-value {
display: block;
font-size: 24px;
font-weight: 800;
color: #2c3e50;
}
.rpc-positive { color: #27ae60; }
.rpc-negative { color: #c0392b; }
/* Article Styles */
.rpc-article {
margin-top: 50px;
line-height: 1.6;
color: #333;
}
.rpc-article h3 {
color: #2c3e50;
margin-top: 30px;
border-bottom: 2px solid #eee;
padding-bottom: 10px;
}
.rpc-article p {
margin-bottom: 15px;
}
.rpc-article ul {
margin-bottom: 15px;
padding-left: 20px;
}
.rpc-article li {
margin-bottom: 8px;
}
function calculateRentalROI() {
// Get Input Values
var price = parseFloat(document.getElementById('purchasePrice').value);
var downPercent = parseFloat(document.getElementById('downPaymentPercent').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var years = parseFloat(document.getElementById('loanTerm').value);
var rent = parseFloat(document.getElementById('monthlyRent').value);
var taxAnnual = parseFloat(document.getElementById('annualTaxes').value);
var insuranceAnnual = parseFloat(document.getElementById('annualInsurance').value);
var monthlyMaint = parseFloat(document.getElementById('monthlyMaintenance').value);
// Validation
if (isNaN(price) || isNaN(downPercent) || isNaN(interestRate) || isNaN(years) || isNaN(rent)) {
alert("Please fill in all fields with valid numbers.");
return;
}
// Calculations
var downPaymentAmount = price * (downPercent / 100);
var loanAmount = price – downPaymentAmount;
// Mortgage Calculation (P&I)
var monthlyRate = (interestRate / 100) / 12;
var numPayments = years * 12;
var mortgagePayment = 0;
if (interestRate === 0) {
mortgagePayment = loanAmount / numPayments;
} else {
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
}
// Expense Calculations
var monthlyTax = taxAnnual / 12;
var monthlyIns = insuranceAnnual / 12;
var totalMonthlyOperatingExpenses = monthlyTax + monthlyIns + monthlyMaint; // Excluding mortgage
var totalMonthlyExpenses = totalMonthlyOperatingExpenses + mortgagePayment; // Including mortgage
// Metrics
var monthlyCashFlow = rent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// NOI (Net Operating Income) = Annual Income – Annual Operating Expenses (Excluding Financing)
var annualOperatingExpenses = totalMonthlyOperatingExpenses * 12;
var noi = (rent * 12) – annualOperatingExpenses;
// Cap Rate = NOI / Purchase Price
var capRate = (noi / price) * 100;
// Cash on Cash Return = Annual Cash Flow / Total Cash Invested
// Assuming Cash Invested = Down Payment for simplicity (ignoring closing costs in this basic calc)
var cashInvested = downPaymentAmount;
var cocRoi = 0;
if (cashInvested > 0) {
cocRoi = (annualCashFlow / cashInvested) * 100;
}
// Display Results
var displayCashFlow = document.getElementById('resultCashFlow');
var displayCoc = document.getElementById('resultCoc');
var displayCap = document.getElementById('resultCap');
var displayExpenses = document.getElementById('resultExpenses');
var displayMortgage = document.getElementById('resultMortgage');
var displayNOI = document.getElementById('resultNOI');
// Formatting
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
displayCashFlow.innerText = formatter.format(monthlyCashFlow);
displayExpenses.innerText = formatter.format(totalMonthlyExpenses);
displayMortgage.innerText = formatter.format(mortgagePayment);
displayNOI.innerText = formatter.format(noi);
displayCoc.innerText = cocRoi.toFixed(2) + "%";
displayCap.innerText = capRate.toFixed(2) + "%";
// Styling positive/negative
displayCashFlow.className = "rpc-result-value " + (monthlyCashFlow >= 0 ? "rpc-positive" : "rpc-negative");
displayCoc.className = "rpc-result-value " + (cocRoi >= 0 ? "rpc-positive" : "rpc-negative");
// Show Results Section
document.getElementById('rpc-results').style.display = 'block';
}
Rental Property ROI Calculator
Purchase & Loan
Income & Expenses
Analysis Results
Monthly Cash Flow
–
Cash on Cash ROI
–
Cap Rate
–
Total Monthly Expenses
–
Mortgage Payment (P&I): –
Net Operating Income (Annual): –
Understanding Rental Property Analysis
Investing in real estate is a numbers game. Whether you are looking at a single-family home, a duplex, or a multi-unit apartment complex, the difference between a profitable investment and a financial liability often comes down to the math. This Rental Property ROI Calculator is designed to help investors quickly evaluate the potential performance of a real estate asset.
Key Metrics Explained
When analyzing a rental property, there are three primary metrics you should focus on:
- Cash Flow: This is the net amount of money moving in or out of the investment each month. It is calculated by subtracting all monthly expenses (including the mortgage) from the monthly rental income. Positive cash flow means the property pays for itself and generates profit.
- Cash on Cash Return (CoC ROI): This measures the annual return on the actual cash you invested (down payment). Unlike general ROI, it looks specifically at the efficiency of your deployed capital. A CoC return of 8-12% is often considered a solid benchmark for residential real estate.
- Cap Rate (Capitalization Rate): This metric indicates the rate of return on a real estate investment property based on the income that the property is expected to generate, assuming the property was bought with cash (no mortgage). It allows you to compare the profitability of different properties regardless of how they are financed.
How to Estimate Expenses
One of the most common mistakes new investors make is underestimating expenses. When using this calculator, ensure you are accounting for:
- Vacancy: Properties are rarely occupied 100% of the time. It is prudent to budget 5-10% of gross rent for vacancy periods.
- CapEx (Capital Expenditures): Big-ticket items like roofs, HVAC systems, and water heaters will eventually need replacement. Setting aside reserves monthly protects your cash flow.
- Management Fees: Even if you plan to self-manage, it is wise to run the numbers assuming a property management fee (typically 8-10% of rent) to ensure the deal still works if you decide to outsource later.
The 1% Rule
A popular "rule of thumb" in real estate is the 1% Rule. It states that the monthly rent should be at least 1% of the purchase price. For example, a $200,000 home should rent for at least $2,000/month. While this rule is becoming harder to find in high-cost markets, it serves as a quick filter to decide which properties are worth a deeper analysis using the calculator above.
Using This Calculator for Decision Making
Input your purchase price, financing terms, and estimated expenses to see the projected outcome. If the Cash Flow is negative, the property will cost you money every month to own. If the Cash on Cash ROI is lower than what you could earn in the stock market or a high-yield savings account, the risk of real estate may not be justified. Use these numbers to negotiate a lower purchase price or identify when to walk away from a deal.