Analyze the profitability of your real estate investment.
30 Years
15 Years
20 Years
10 Years
Monthly Mortgage (P&I):$0.00
Total Monthly Expenses:$0.00
Monthly Cash Flow:$0.00
Net Operating Income (Annual):$0.00
Cap Rate:0.00%
Cash on Cash Return:0.00%
function calculateROI() {
// 1. Get Values
var price = parseFloat(document.getElementById('prop_price').value) || 0;
var down = parseFloat(document.getElementById('prop_down').value) || 0;
var closing = parseFloat(document.getElementById('prop_closing').value) || 0;
var rate = parseFloat(document.getElementById('prop_rate').value) || 0;
var term = parseInt(document.getElementById('prop_term').value) || 30;
var rent = parseFloat(document.getElementById('prop_rent').value) || 0;
var taxAnnual = parseFloat(document.getElementById('prop_tax').value) || 0;
var insAnnual = parseFloat(document.getElementById('prop_ins').value) || 0;
var hoaMonthly = parseFloat(document.getElementById('prop_hoa').value) || 0;
var maintPercent = parseFloat(document.getElementById('prop_maint').value) || 0;
// 2. Validate basic inputs to prevent errors
if (price 0) {
mortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
} else {
mortgage = loanAmount / numPayments;
}
// 4. Calculate Expenses
var maintVacancyCost = rent * (maintPercent / 100);
var monthlyTax = taxAnnual / 12;
var monthlyIns = insAnnual / 12;
var totalMonthlyExpenses = mortgage + monthlyTax + monthlyIns + hoaMonthly + maintVacancyCost;
var operatingExpensesAnnual = (monthlyTax + monthlyIns + hoaMonthly + maintVacancyCost) * 12;
// 5. Calculate Returns
var monthlyCashFlow = rent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
var noi = (rent * 12) – operatingExpensesAnnual;
var totalCashInvested = down + closing;
// Cap Rate = NOI / Price
var capRate = (noi / price) * 100;
// Cash on Cash = Annual Cash Flow / Total Cash Invested
var cocReturn = 0;
if (totalCashInvested > 0) {
cocReturn = (annualCashFlow / totalCashInvested) * 100;
}
// 6. Display Results
document.getElementById('res_mortgage').innerText = "$" + mortgage.toFixed(2);
document.getElementById('res_expenses').innerText = "$" + totalMonthlyExpenses.toFixed(2);
var cfElement = document.getElementById('res_cashflow');
cfElement.innerText = "$" + monthlyCashFlow.toFixed(2);
if(monthlyCashFlow >= 0) {
cfElement.className = "roi-result-value roi-highlight";
} else {
cfElement.className = "roi-result-value roi-negative";
}
document.getElementById('res_noi').innerText = "$" + noi.toFixed(2);
document.getElementById('res_cap').innerText = capRate.toFixed(2) + "%";
var cocElement = document.getElementById('res_coc');
cocElement.innerText = cocReturn.toFixed(2) + "%";
if(cocReturn >= 0) {
cocElement.className = "roi-result-value roi-highlight";
} else {
cocElement.className = "roi-result-value roi-negative";
}
document.getElementById('roi_results').style.display = 'block';
}
Understanding Your Rental Property Investment
Investing in real estate is one of the most reliable ways to build wealth, but simply buying a property and renting it out doesn't guarantee a profit. To succeed, you must understand the numbers behind the deal. This Rental Property ROI Calculator helps you analyze the cash flow and return on investment (ROI) for potential properties.
What is Cash on Cash Return?
Cash on Cash (CoC) Return is widely considered the most important metric for rental investors. It measures the annual cash income earned on the property against the actual cash you invested (down payment plus closing costs). unlike purely appreciation-based metrics, CoC tells you how hard your money is working for you right now.
Formula: (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100
A good Cash on Cash return typically ranges from 8% to 12%, though this varies significantly by market.
Cap Rate vs. Cash Flow
While Cash Flow is the money entering your pocket every month, the Capitalization Rate (Cap Rate) measures the property's natural profitability regardless of how you finance it. It is calculated by dividing the Net Operating Income (NOI) by the property price.
Cash Flow: Vital for day-to-day operations and covering debts.
Cap Rate: Essential for comparing the value of different properties quickly, excluding mortgage terms.
How to Estimate Expenses
Many new investors underestimate expenses, leading to negative cash flow. When using this calculator, ensure you account for:
Vacancy Rates: Assume the property will sit empty for at least 5-8% of the year (roughly 2-4 weeks).
Maintenance: Set aside 10-15% of the rent for repairs (roof, HVAC, plumbing).
Property Management: If you hire a manager, deduct another 8-10% of the monthly rent.
Interpreting the Results
If your Monthly Cash Flow is negative, the property is a liability that costs you money to hold. Unless you are in a rapidly appreciating market, negative cash flow is risky. Aim for positive cash flow to create a buffer against unexpected repairs or vacancies.