Rental Property ROI Calculator
.roi-calculator-container {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
padding: 20px;
background: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.roi-calc-header {
text-align: center;
margin-bottom: 25px;
}
.roi-calc-header h2 {
color: #2c3e50;
margin: 0;
}
.roi-input-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.roi-input-grid {
grid-template-columns: 1fr;
}
}
.roi-input-group {
margin-bottom: 15px;
}
.roi-input-group label {
display: block;
font-weight: 600;
margin-bottom: 5px;
color: #34495e;
font-size: 0.9rem;
}
.roi-input-group input {
width: 100%;
padding: 10px;
border: 1px solid #bdc3c7;
border-radius: 4px;
font-size: 1rem;
box-sizing: border-box;
}
.roi-section-title {
grid-column: 1 / -1;
font-size: 1.1rem;
font-weight: bold;
color: #2980b9;
border-bottom: 2px solid #2980b9;
padding-bottom: 5px;
margin-top: 10px;
margin-bottom: 10px;
}
.roi-btn {
grid-column: 1 / -1;
background-color: #27ae60;
color: white;
border: none;
padding: 15px;
font-size: 1.1rem;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
transition: background 0.3s;
margin-top: 10px;
}
.roi-btn:hover {
background-color: #219150;
}
.roi-results {
margin-top: 30px;
background: white;
padding: 20px;
border-radius: 6px;
border: 1px solid #ddd;
display: none;
}
.roi-results.active {
display: block;
}
.roi-result-row {
display: flex;
justify-content: space-between;
padding: 10px 0;
border-bottom: 1px solid #eee;
}
.roi-result-row:last-child {
border-bottom: none;
}
.roi-highlight {
font-weight: bold;
color: #2c3e50;
}
.roi-highlight-green {
font-weight: bold;
color: #27ae60;
}
.roi-article {
max-width: 800px;
margin: 40px auto;
font-family: Georgia, serif;
line-height: 1.6;
color: #333;
}
.roi-article h2 {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, sans-serif;
color: #2c3e50;
margin-top: 30px;
}
.roi-article h3 {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, sans-serif;
color: #34495e;
}
.roi-article p {
margin-bottom: 15px;
}
.roi-article ul {
margin-bottom: 15px;
padding-left: 20px;
}
Investment Analysis
Net Operating Income (NOI) (Annual):
$0.00
Mortgage Payment (Monthly):
$0.00
Cash Flow (Monthly):
$0.00
Total Cash Invested:
$0.00
Cash on Cash Return:
0.00%
Cap Rate:
0.00%
function calculateRentalROI() {
// 1. Get Inputs
var price = parseFloat(document.getElementById('roiPrice').value) || 0;
var closingCosts = parseFloat(document.getElementById('roiClosing').value) || 0;
var downPaymentPercent = parseFloat(document.getElementById('roiDown').value) || 0;
var interestRate = parseFloat(document.getElementById('roiRate').value) || 0;
var loanTermYears = parseFloat(document.getElementById('roiTerm').value) || 0;
var monthlyRent = parseFloat(document.getElementById('roiRent').value) || 0;
var vacancyRate = parseFloat(document.getElementById('roiVacancy').value) || 0;
var annualTaxes = parseFloat(document.getElementById('roiTax').value) || 0;
var annualInsurance = parseFloat(document.getElementById('roiIns').value) || 0;
var mgmtFeePercent = parseFloat(document.getElementById('roiMgmt').value) || 0;
var annualMaintenance = parseFloat(document.getElementById('roiMaint').value) || 0;
// 2. Calculate Loan Data
var downPaymentAmount = price * (downPaymentPercent / 100);
var loanAmount = price – downPaymentAmount;
var monthlyInterestRate = (interestRate / 100) / 12;
var numberOfPayments = loanTermYears * 12;
var monthlyMortgage = 0;
if (loanAmount > 0) {
if (interestRate === 0) {
monthlyMortgage = loanAmount / numberOfPayments;
} else {
monthlyMortgage = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
}
}
// 3. Calculate Income
var grossAnnualRent = monthlyRent * 12;
var vacancyLoss = grossAnnualRent * (vacancyRate / 100);
var effectiveGrossIncome = grossAnnualRent – vacancyLoss;
// 4. Calculate Expenses
var mgmtFeeAmount = effectiveGrossIncome * (mgmtFeePercent / 100);
var totalOperatingExpenses = annualTaxes + annualInsurance + annualMaintenance + mgmtFeeAmount;
// 5. Calculate Metrics
var noi = effectiveGrossIncome – totalOperatingExpenses; // Net Operating Income
var annualDebtService = monthlyMortgage * 12;
var annualCashFlow = noi – annualDebtService;
var monthlyCashFlow = annualCashFlow / 12;
var totalCashInvested = downPaymentAmount + closingCosts;
var cashOnCashReturn = 0;
if (totalCashInvested > 0) {
cashOnCashReturn = (annualCashFlow / totalCashInvested) * 100;
}
var capRate = 0;
if (price > 0) {
capRate = (noi / price) * 100;
}
// 6. Display Results
document.getElementById('resNOI').innerText = "$" + noi.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resMortgage').innerText = "$" + monthlyMortgage.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resCashFlow').innerText = "$" + monthlyCashFlow.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTotalInvested').innerText = "$" + totalCashInvested.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resCoC').innerText = cashOnCashReturn.toFixed(2) + "%";
document.getElementById('resCapRate').innerText = capRate.toFixed(2) + "%";
// Show result box
document.getElementById('roiResults').classList.add('active');
}
Understanding Rental Property ROI
Investing in real estate is one of the most popular ways to build long-term wealth, but knowing the numbers is crucial before signing any contract. A Rental Property ROI (Return on Investment) Calculator helps investors analyze the profitability of a potential purchase by breaking down income, expenses, and debt service.
Key Metrics Explained
When evaluating a rental property, there are two primary metrics you should focus on:
- Cash on Cash Return: This measures the annual return on the actual cash you invested (down payment + closing costs). Unlike general ROI, it ignores the loan amount and focuses purely on the efficiency of your cash. A return of 8-12% is often considered a solid benchmark for residential rentals.
- Cap Rate (Capitalization Rate): This metric evaluates the profitability of the property irrespective of how it is financed. It is calculated by dividing the Net Operating Income (NOI) by the purchase price. This helps compare properties as if they were bought with all cash.
How to Calculate Net Operating Income (NOI)
NOI is the heartbeat of rental property analysis. It represents the income the property generates after all operating expenses are paid, but before the mortgage is paid.
The formula is: NOI = Effective Gross Income – Operating Expenses.
Operating expenses include property taxes, insurance, management fees, and maintenance reserves. Note that "Effective Gross Income" accounts for vacancy rates—money lost when the unit sits empty between tenants.
The Importance of Cash Flow
While appreciation (the property increasing in value over time) is a great bonus, seasoned investors prioritize monthly cash flow. This is the money left over after all expenses and the mortgage payment are covered. Positive cash flow ensures the property pays for itself and provides passive income, reducing the risk of holding the asset during market downturns.
Factoring in "Hidden" Costs
Novice investors often overestimate returns by forgetting specific costs. Always account for:
- Vacancy Rate: A standard 5% to 8% deduction from rent assumes the property won't be occupied 365 days a year.
- Maintenance & CapEx: Roofs leak and water heaters break. Setting aside 1% of the property value or 10% of the rent annually creates a safety net for these repairs.
- Management Fees: Even if you plan to self-manage, you should factor in the cost of your time or the eventual cost of a property manager (usually 8-10% of monthly rent).
Use the calculator above to adjust these variables and stress-test your investment to see if it remains profitable under different scenarios.