body {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
line-height: 1.6;
color: #333;
max-width: 1200px;
margin: 0 auto;
padding: 20px;
}
.calc-container {
background: #fff;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 30px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
margin-bottom: 40px;
}
.calc-header {
text-align: center;
margin-bottom: 25px;
}
.calc-header h2 {
margin: 0;
color: #2c3e50;
font-size: 24px;
}
.calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 768px) {
.calc-grid {
grid-template-columns: 1fr;
}
}
.input-group {
margin-bottom: 15px;
}
.input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
font-size: 14px;
color: #555;
}
.input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.input-group input:focus {
border-color: #3498db;
outline: none;
}
.section-title {
grid-column: 1 / -1;
font-size: 18px;
font-weight: 700;
color: #2c3e50;
margin-top: 10px;
border-bottom: 2px solid #eee;
padding-bottom: 5px;
}
.btn-calculate {
grid-column: 1 / -1;
background: #27ae60;
color: white;
border: none;
padding: 15px;
font-size: 18px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
transition: background 0.3s;
margin-top: 10px;
width: 100%;
}
.btn-calculate:hover {
background: #219150;
}
.results-section {
grid-column: 1 / -1;
background: #f8f9fa;
border-radius: 6px;
padding: 20px;
margin-top: 20px;
display: none;
}
.result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
padding-bottom: 10px;
border-bottom: 1px solid #e9ecef;
}
.result-row:last-child {
border-bottom: none;
margin-bottom: 0;
padding-bottom: 0;
}
.result-label {
font-weight: 500;
}
.result-value {
font-weight: 700;
color: #2c3e50;
}
.highlight-value {
color: #27ae60;
font-size: 1.1em;
}
.negative {
color: #c0392b;
}
.content-section {
margin-top: 50px;
background: #fff;
padding: 20px;
}
.content-section h2 {
color: #2c3e50;
border-bottom: 2px solid #3498db;
padding-bottom: 10px;
display: inline-block;
margin-top: 30px;
}
.content-section p {
margin-bottom: 15px;
font-size: 16px;
}
.content-section ul {
margin-bottom: 20px;
}
.content-section li {
margin-bottom: 10px;
}
.faq-item {
background: #f9f9f9;
padding: 15px;
border-left: 4px solid #3498db;
margin-bottom: 15px;
}
.faq-question {
font-weight: bold;
margin-bottom: 5px;
display: block;
}
function calculateROI() {
// Get Inputs
var price = parseFloat(document.getElementById('purchasePrice').value);
var closingCosts = parseFloat(document.getElementById('closingCosts').value);
var downPaymentPercent = parseFloat(document.getElementById('downPaymentPercent').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var loanTerm = parseFloat(document.getElementById('loanTerm').value);
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value);
var monthlyExpenses = parseFloat(document.getElementById('monthlyExpenses').value);
// Validation
if (isNaN(price) || isNaN(downPaymentPercent) || isNaN(monthlyRent)) {
alert("Please enter valid numbers for Price, Down Payment, and Rent.");
return;
}
// Calculations – Investment
var downPaymentAmount = price * (downPaymentPercent / 100);
var loanAmount = price – downPaymentAmount;
var totalInvestment = downPaymentAmount + closingCosts;
// Calculations – Mortgage
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
var mortgagePayment = 0;
if (interestRate > 0) {
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else {
mortgagePayment = loanAmount / numberOfPayments;
}
// Calculations – Cash Flow
var totalMonthlyExpenses = mortgagePayment + monthlyExpenses;
var monthlyCashFlow = monthlyRent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// Calculations – Metrics
var annualNOI = (monthlyRent – monthlyExpenses) * 12; // Net Operating Income (Pre-debt)
var capRate = (price > 0) ? (annualNOI / price) * 100 : 0;
var cashOnCash = (totalInvestment > 0) ? (annualCashFlow / totalInvestment) * 100 : 0;
// Display Results
document.getElementById('resTotalInvestment').innerHTML = formatCurrency(totalInvestment);
document.getElementById('resMortgage').innerHTML = formatCurrency(mortgagePayment);
var cashFlowEl = document.getElementById('resMonthlyCashFlow');
cashFlowEl.innerHTML = formatCurrency(monthlyCashFlow);
if(monthlyCashFlow < 0) {
cashFlowEl.classList.add('negative');
cashFlowEl.classList.remove('highlight-value');
} else {
cashFlowEl.classList.remove('negative');
cashFlowEl.classList.add('highlight-value');
}
document.getElementById('resNOI').innerHTML = formatCurrency(annualNOI);
document.getElementById('resCapRate').innerHTML = capRate.toFixed(2) + '%';
var cocEl = document.getElementById('resCashOnCash');
cocEl.innerHTML = cashOnCash.toFixed(2) + '%';
if(cashOnCash < 0) {
cocEl.classList.add('negative');
cocEl.classList.remove('highlight-value');
} else {
cocEl.classList.remove('negative');
cocEl.classList.add('highlight-value');
}
document.getElementById('results').style.display = 'block';
}
function formatCurrency(num) {
return '$' + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
Understanding Rental Property ROI
Calculating the Return on Investment (ROI) for rental properties is essential for any real estate investor. Unlike stock market investments, real estate offers multiple avenues of return: cash flow, principal paydown (equity buildup), appreciation, and tax benefits. This calculator specifically focuses on the cash flow and immediate financial performance of a prospective deal.
Key Metrics Explained
1. Cash on Cash Return (CoC ROI)
Cash on Cash Return is perhaps the most critical metric for rental investors. It measures the annual pre-tax cash flow relative to the total cash invested.
- Formula: (Annual Cash Flow / Total Cash Invested) × 100
- Why it matters: It tells you how hard your actual dollars are working. If you put $50,000 into a deal and it generates $5,000 a year in profit, your CoC ROI is 10%. This allows you to compare real estate returns directly against other investment vehicles like bonds or stocks.
2. Net Operating Income (NOI)
NOI is the total income generated by the property minus all necessary operating expenses (vacancy, management, taxes, insurance, repairs). Crucially, NOI excludes mortgage payments (debt service).
- Formula: (Monthly Rent – Operating Expenses) × 12
- Why it matters: NOI helps determine the raw profitability of the asset regardless of how it is financed. It is the basis for calculating the Cap Rate.
3. Cap Rate (Capitalization Rate)
The Cap Rate measures the natural rate of return of a real estate investment assuming it was bought with all cash.
- Formula: (Net Operating Income / Purchase Price) × 100
- Why it matters: It allows investors to compare properties in different markets quickly. A higher Cap Rate generally implies higher returns but often comes with higher risk or a less desirable location.
4. Monthly Cash Flow
This is the money left over after all bills, expenses, and mortgage payments have been paid. Positive cash flow ensures the property pays for itself and provides income, while negative cash flow means you are paying out of pocket to hold the asset.
Example Calculation
Consider a property listed for $250,000. You decide to put 20% down ($50,000) and pay $5,000 in closing costs. Your total cash invested is $55,000.
If the property rents for $2,200/month and your total operating expenses (taxes, insurance, maintenance) are $600/month, your NOI is $1,600/month.
Assuming a mortgage payment of roughly $1,264 (at 6.5% interest), your monthly cash flow would be:
$1,600 (NOI) – $1,264 (Mortgage) = $336/month
Your annual cash flow is $4,032. Therefore, your Cash on Cash ROI is:
($4,032 / $55,000) × 100 = 7.33%
Frequently Asked Questions
What is a "good" Cash on Cash return?
While this varies by investor goals and risk tolerance, many real estate investors aim for a Cash on Cash return between 8% and 12%. In highly appreciative markets, investors might accept lower cash flow (4-6%) in exchange for future equity growth.
Does this calculator include tax benefits?
No, this calculator focuses on pre-tax cash flow. Real estate offers significant tax advantages like depreciation, which can often shield your cash flow from income taxes, effectively boosting your actual ROI.
What should I include in "Monthly Operating Expenses"?
You should include Property Taxes, Landlord Insurance, HOA fees (if applicable), Property Management fees (usually 8-10% of rent), and an estimated budget for Repairs and Capital Expenditures (CapEx). A common rule of thumb is to allocate 5-10% of rent for maintenance.