.calculator-container {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
max-width: 800px;
margin: 0 auto;
padding: 20px;
background-color: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.calc-row {
display: flex;
flex-wrap: wrap;
margin-bottom: 15px;
justify-content: space-between;
}
.calc-col {
flex: 1 1 45%;
margin: 5px;
min-width: 250px;
}
.calc-label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #333;
}
.calc-input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
box-sizing: border-box;
font-size: 16px;
}
.calc-btn {
width: 100%;
padding: 15px;
background-color: #0073aa;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.3s;
margin-top: 10px;
}
.calc-btn:hover {
background-color: #005177;
}
.calc-results {
margin-top: 25px;
padding: 20px;
background-color: #fff;
border: 1px solid #ddd;
border-radius: 4px;
display: none;
}
.result-grid {
display: grid;
grid-template-columns: repeat(auto-fit, minmax(200px, 1fr));
gap: 20px;
}
.result-item {
text-align: center;
padding: 10px;
background-color: #f0f7ff;
border-radius: 6px;
}
.result-value {
font-size: 24px;
font-weight: bold;
color: #2c3e50;
margin-top: 5px;
}
.result-value.positive { color: #27ae60; }
.result-value.negative { color: #c0392b; }
.result-label {
font-size: 14px;
color: #7f8c8d;
text-transform: uppercase;
letter-spacing: 0.5px;
}
.seo-content {
max-width: 800px;
margin: 40px auto;
font-family: 'Georgia', serif;
line-height: 1.6;
color: #333;
}
.seo-content h2 {
font-family: 'Segoe UI', sans-serif;
color: #2c3e50;
border-bottom: 2px solid #0073aa;
padding-bottom: 10px;
margin-top: 30px;
}
.seo-content h3 {
font-family: 'Segoe UI', sans-serif;
color: #2c3e50;
margin-top: 25px;
}
.seo-content ul {
margin-bottom: 20px;
}
.seo-content li {
margin-bottom: 10px;
}
.disclaimer {
font-size: 12px;
color: #999;
margin-top: 20px;
text-align: center;
}
function calculateRentalResults() {
// 1. Get Input Values
var price = parseFloat(document.getElementById("purchasePrice").value);
var downPercent = parseFloat(document.getElementById("downPayment").value);
var ratePercent = parseFloat(document.getElementById("interestRate").value);
var years = parseFloat(document.getElementById("loanTerm").value);
var rent = parseFloat(document.getElementById("monthlyRent").value);
var expenses = parseFloat(document.getElementById("monthlyExpenses").value);
// 2. Validate Inputs
if (isNaN(price) || isNaN(downPercent) || isNaN(ratePercent) || isNaN(years) || isNaN(rent) || isNaN(expenses)) {
alert("Please enter valid numbers in all fields.");
return;
}
// 3. Perform Calculations
// Loan Calculation
var downPaymentAmount = price * (downPercent / 100);
var loanAmount = price – downPaymentAmount;
// Monthly Mortgage Payment (Principal + Interest)
// Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
var monthlyRate = (ratePercent / 100) / 12;
var numberOfPayments = years * 12;
var mortgagePayment = 0;
if (ratePercent === 0) {
mortgagePayment = loanAmount / numberOfPayments;
} else {
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
}
// Cash Flow Analysis
var totalMonthlyOutflow = mortgagePayment + expenses;
var monthlyCashFlow = rent – totalMonthlyOutflow;
var annualCashFlow = monthlyCashFlow * 12;
// Investment Returns
// Cash on Cash Return = Annual Pre-Tax Cash Flow / Total Cash Invested
// Note: Assuming Total Cash Invested = Down Payment (simplification)
var cashOnCash = 0;
if (downPaymentAmount > 0) {
cashOnCash = (annualCashFlow / downPaymentAmount) * 100;
}
// Cap Rate = Net Operating Income (NOI) / Current Market Value
// NOI = Annual Income – Annual Operating Expenses (Excluding Mortgage)
var annualNOI = (rent – expenses) * 12;
var capRate = 0;
if (price > 0) {
capRate = (annualNOI / price) * 100;
}
// 4. Update UI
var resultDiv = document.getElementById("resultsArea");
var flowDiv = document.getElementById("monthlyCashFlow");
var cocDiv = document.getElementById("cashOnCash");
var capDiv = document.getElementById("capRate");
var mortgageDiv = document.getElementById("monthlyMortgage");
resultDiv.style.display = "block";
// Formatting
mortgageDiv.innerText = "$" + mortgagePayment.toFixed(2);
flowDiv.innerText = "$" + monthlyCashFlow.toFixed(2);
if(monthlyCashFlow >= 0) {
flowDiv.className = "result-value positive";
} else {
flowDiv.className = "result-value negative";
}
cocDiv.innerText = cashOnCash.toFixed(2) + "%";
if(cashOnCash >= 0) {
cocDiv.className = "result-value positive";
} else {
cocDiv.className = "result-value negative";
}
capDiv.innerText = capRate.toFixed(2) + "%";
}
Understanding Rental Property Investment Analysis
Investing in rental real estate is one of the most reliable ways to build long-term wealth, but success depends entirely on the numbers. Unlike stocks, where speculation often drives value, real estate valuation is grounded in math. This Rental Property ROI Calculator helps investors analyze deals quickly to determine if a property will generate positive cash flow or drain their resources.
What is Cash Flow?
Cash flow is the net amount of money moving into or out of a business or property. In real estate terms, it is the money remaining after all operating expenses and mortgage payments have been made.
- Positive Cash Flow: The rent covers all expenses, and you have profit left over every month.
- Negative Cash Flow: The rent does not cover expenses, and you must pay out of pocket to keep the property.
Most seasoned investors prioritize cash flow over appreciation because it ensures the property is sustainable during market downturns.
Key Metrics Explained
1. Cash-on-Cash Return (CoC)
Cash-on-Cash return is arguably the most important metric for rental investors. It measures the annual return you are making on the actual cash you invested, not the total loan amount.
Formula: (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100
For example, if you put down $50,000 to buy a house and it generates $5,000 in net profit per year, your Cash-on-Cash return is 10%. This allows you to compare real estate returns directly against other investments like stocks or bonds.
2. Cap Rate (Capitalization Rate)
The Cap Rate measures the natural rate of return of a property assuming it was bought with all cash (no loan). It is calculated by dividing the Net Operating Income (NOI) by the property's purchase price.
Cap rates are useful for comparing similar properties in the same area. A higher cap rate generally implies a higher return but may come with higher risk (e.g., a property in a declining neighborhood). A lower cap rate often indicates a safer investment with lower yield.
Common Operating Expenses to Consider
When using the calculator, ensure you estimate your "Monthly Operating Expenses" accurately. Missing these costs is the #1 reason new investors fail.
- Property Taxes: Verify current tax rates with the local county assessor.
- Insurance: Landlord insurance policies are often 20-25% more expensive than homeowner policies.
- Maintenance & Repairs: A good rule of thumb is to budget 5% to 10% of the rent for repairs.
- Vacancy: Properties won't be occupied 365 days a year. Budgeting 5% to 8% for vacancy helps smooth out income gaps.
- Property Management: If you don't manage it yourself, expect to pay 8% to 10% of the monthly rent to a manager.
Is Your Rental Property a Good Deal?
While every investor has different goals, a common benchmark for a "good deal" involves satisfying the 1% Rule (monthly rent should be at least 1% of the purchase price) and achieving a Cash-on-Cash return of 8% to 12%. Use the calculator above to adjust your offer price or down payment to see how the numbers change to meet your investment criteria.