How to Calculate Term Structure of Interest Rates

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Rental Property Cash Flow & ROI Calculator :root { –primary-color: #2c3e50; –accent-color: #27ae60; –bg-color: #f4f7f6; –text-color: #333; –border-radius: 8px; } body { font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; line-height: 1.6; color: var(–text-color); background-color: var(–bg-color); margin: 0; padding: 20px; } .calculator-wrapper { max-width: 1000px; margin: 0 auto; background: #fff; padding: 40px; border-radius: var(–border-radius); box-shadow: 0 4px 15px rgba(0,0,0,0.1); } .calc-header { text-align: center; margin-bottom: 30px; } .calc-header h1 { margin: 0; color: var(–primary-color); } .calc-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 40px; } @media (max-width: 768px) { .calc-grid { grid-template-columns: 1fr; } } .input-group { margin-bottom: 20px; } .input-group label { display: block; font-weight: 600; margin-bottom: 8px; color: var(–primary-color); } .input-group input { width: 100%; padding: 12px; border: 1px solid #ddd; border-radius: 4px; font-size: 16px; box-sizing: border-box; /* Fix padding issue */ } .input-group input:focus { border-color: var(–accent-color); outline: none; } .section-title { font-size: 1.1em; font-weight: bold; border-bottom: 2px solid #eee; padding-bottom: 10px; margin-bottom: 20px; margin-top: 0; color: var(–accent-color); } .btn-calculate { background-color: var(–accent-color); color: white; border: none; padding: 15px 30px; font-size: 18px; font-weight: bold; border-radius: var(–border-radius); cursor: pointer; width: 100%; transition: background 0.3s; margin-top: 10px; } .btn-calculate:hover { background-color: #219150; } .results-card { background: #f8f9fa; padding: 25px; border-radius: var(–border-radius); border: 1px solid #e9ecef; } .result-row { display: flex; justify-content: space-between; padding: 12px 0; border-bottom: 1px solid #ddd; } .result-row:last-child { border-bottom: none; } .result-label { color: #666; } .result-value { font-weight: bold; font-size: 1.1em; } .roi-highlight { color: var(–accent-color); font-size: 1.4em; } .negative { color: #e74c3c; } .seo-content { margin-top: 50px; border-top: 1px solid #eee; padding-top: 30px; } .seo-content h2 { color: var(–primary-color); margin-top: 30px; } .seo-content p { margin-bottom: 15px; } .seo-content ul { margin-bottom: 20px; padding-left: 20px; } .seo-content li { margin-bottom: 10px; }

Rental Property ROI Calculator

Analyze cash flow, cap rate, and cash-on-cash return for your real estate investment.

Purchase Details
Income & Expenses
Financial Breakdown
Initial Cash Invested: $0.00
Monthly Mortgage Payment: $0.00
Net Operating Income (Monthly): $0.00
Monthly Cash Flow: $0.00
Cash on Cash ROI: 0.00%
Cap Rate: 0.00%
*Estimates only. Does not include appreciation or tax benefits.

Understanding Rental Property ROI

Investing in real estate is one of the most reliable ways to build wealth, but not every property is a good deal. To ensure profitability, investors rely on specific metrics like Cash on Cash Return (ROI) and Cash Flow. This calculator helps you analyze a potential rental property to determine if it meets your investment criteria.

Why Cash Flow Matters

Cash flow is the net income from a real estate investment after mortgage payments and operating expenses have been made. Positive cash flow ensures the property pays for itself and provides passive income.

  • Gross Income: Total rent collected plus any other income (laundry, parking).
  • Vacancy Loss: The estimated percentage of time the property sits empty.
  • Operating Expenses: Property taxes, insurance, maintenance, property management fees, and HOA dues.

What is Cash on Cash Return?

While standard ROI looks at total return, Cash on Cash Return measures the annual pre-tax cash flow relative to the total amount of cash invested (down payment + closing costs + rehab costs). It is the primary metric for investors using leverage (mortgages).

Formula: (Annual Cash Flow / Total Cash Invested) x 100

How to Use This Calculator

Enter the purchase price, your financing terms, and expected rental income. Be realistic about expenses; a common mistake is underestimating maintenance and vacancy costs. A "good" Cash on Cash return varies by market, but many investors aim for 8-12%.

function calculateROI() { // 1. Get Input Values var price = parseFloat(document.getElementById('purchasePrice').value); var closingCosts = parseFloat(document.getElementById('closingCosts').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 vacancyRate = parseFloat(document.getElementById('vacancyRate').value); var monthlyExp = parseFloat(document.getElementById('monthlyExpenses').value); // Validation if (isNaN(price) || isNaN(rent)) { alert("Please enter valid numbers for Price and Rent."); return; } // 2. Calculate Loan Details var downPaymentAmount = price * (downPercent / 100); var loanAmount = price – downPaymentAmount; var totalInitialInvested = downPaymentAmount + closingCosts; // Mortgage Calculation (Principal & Interest) var monthlyMortgage = 0; if (interestRate > 0) { var monthlyRate = (interestRate / 100) / 12; var numPayments = years * 12; monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1); } else { monthlyMortgage = loanAmount / (years * 12); } // 3. Calculate Income & Expenses var vacancyLoss = rent * (vacancyRate / 100); var effectiveGrossIncome = rent – vacancyLoss; var totalMonthlyExpenses = monthlyMortgage + monthlyExp; var monthlyCashFlow = effectiveGrossIncome – totalMonthlyExpenses; var annualCashFlow = monthlyCashFlow * 12; // Net Operating Income (NOI) = Income – Operating Expenses (Excluding Mortgage) // Note: monthlyExp includes taxes/insurance/maintenance usually. var monthlyNOI = effectiveGrossIncome – monthlyExp; var annualNOI = monthlyNOI * 12; // 4. Calculate Returns var cashOnCashROI = 0; if (totalInitialInvested > 0) { cashOnCashROI = (annualCashFlow / totalInitialInvested) * 100; } var capRate = 0; if (price > 0) { capRate = (annualNOI / price) * 100; } // 5. Update UI // Format as Currency var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', }); document.getElementById('resInitialInvest').innerText = formatter.format(totalInitialInvested); document.getElementById('resMortgage').innerText = formatter.format(monthlyMortgage); document.getElementById('resNOI').innerText = formatter.format(monthlyNOI); var cashFlowEl = document.getElementById('resCashFlow'); cashFlowEl.innerText = formatter.format(monthlyCashFlow); if(monthlyCashFlow < 0) { cashFlowEl.classList.add('negative'); } else { cashFlowEl.classList.remove('negative'); } var roiEl = document.getElementById('resROI'); roiEl.innerText = cashOnCashROI.toFixed(2) + "%"; if(cashOnCashROI < 0) { roiEl.classList.add('negative'); } else { roiEl.classList.remove('negative'); } document.getElementById('resCapRate').innerText = capRate.toFixed(2) + "%"; } // Run calculation once on load to show initial state window.onload = function() { calculateROI(); };

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