15 Yr Fixed Mortgage Rates Calculator

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Rental Property ROI & Cash Flow Calculator

Investment Summary

Monthly Cash Flow
$0
Cash on Cash Return
0%
Cap Rate
0%
Monthly Mortgage (P&I)
$0
function calculateRentalROI() { var price = parseFloat(document.getElementById('propPrice').value); var downPerc = parseFloat(document.getElementById('downPerc').value); var rate = parseFloat(document.getElementById('intRate').value) / 100 / 12; var term = parseFloat(document.getElementById('loanTerm').value) * 12; var rent = parseFloat(document.getElementById('monthlyRent').value); var exp = parseFloat(document.getElementById('monthlyExp').value); if (isNaN(price) || isNaN(rent) || price 0) { mortgage = loanAmt * (rate * Math.pow(1 + rate, term)) / (Math.pow(1 + rate, term) – 1); } else { mortgage = loanAmt / term; } var monthlyCashFlow = rent – mortgage – exp; var annualCashFlow = monthlyCashFlow * 12; var cocReturn = (annualCashFlow / totalInvestment) * 100; var annualNOI = (rent – exp) * 12; var capRate = (annualNOI / price) * 100; document.getElementById('resCashFlow').innerHTML = "$" + monthlyCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resCoC').innerHTML = cocReturn.toFixed(2) + "%"; document.getElementById('resCap').innerHTML = capRate.toFixed(2) + "%"; document.getElementById('resMortgage').innerHTML = "$" + mortgage.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('results-area').style.display = 'block'; }

Understanding Rental Property ROI

Investing in real estate is one of the most proven ways to build long-term wealth, but the math must work before you sign a contract. Our Rental ROI Calculator helps you analyze properties by breaking down the three most critical metrics: Cash Flow, Cash on Cash Return, and Cap Rate.

Key Investment Metrics Explained

  • Monthly Cash Flow: This is the net profit you take home every month after all bills—including your mortgage, taxes, insurance, and maintenance—are paid. Positive cash flow is essential for covering unexpected repairs.
  • Cash on Cash (CoC) Return: This measures the annual return on the actual money you out-of-pocket (down payment and closing costs). Many investors aim for a CoC return of 8% to 12%.
  • Cap Rate: The Capitalization Rate shows the property's yield regardless of financing. It is calculated by dividing the Net Operating Income (NOI) by the purchase price. It's used to compare the profitability of different properties objectively.

Example ROI Calculation

Imagine you purchase a single-family home for $300,000 with a 20% down payment ($60,000). After adding closing costs, your total initial investment is roughly $69,000.

If the property rents for $2,500/month and your total expenses (mortgage, taxes, insurance) come to $2,100/month, your Monthly Cash Flow is $400. This results in an Annual Cash Flow of $4,800, which gives you a 6.95% Cash on Cash Return ($4,800 / $69,000).

Pro Tip: Don't Forget the Hidden Costs

When entering your monthly expenses, remember to account for a "Vacancy Rate" (usually 5%) and "Maintenance Reserve" (usually 10%). Successful investors always set aside a portion of the rent for the day the HVAC breaks or the property sits empty between tenants.

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