Calculate Compound Interest

by
.roi-calc-container { font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; max-width: 800px; margin: 20px auto; padding: 30px; border: 1px solid #e1e4e8; border-radius: 12px; background-color: #ffffff; color: #333; line-height: 1.6; } .roi-calc-container h2 { color: #1a1a1a; margin-top: 0; margin-bottom: 25px; border-bottom: 2px solid #0073aa; padding-bottom: 10px; font-size: 28px; } .roi-calc-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 20px; margin-bottom: 30px; } .roi-calc-group { display: flex; flex-direction: column; } .roi-calc-group label { font-weight: 600; margin-bottom: 8px; font-size: 14px; color: #444; } .roi-calc-group input { padding: 12px; border: 1px solid #ccc; border-radius: 6px; font-size: 16px; transition: border-color 0.3s; } .roi-calc-group input:focus { border-color: #0073aa; outline: none; } .roi-calc-button { grid-column: span 2; background-color: #0073aa; color: white; border: none; padding: 15px; font-size: 18px; font-weight: bold; border-radius: 6px; cursor: pointer; transition: background 0.3s; margin-top: 10px; } .roi-calc-button:hover { background-color: #005177; } .roi-results { grid-column: span 2; background-color: #f9f9f9; padding: 25px; border-radius: 8px; border-left: 5px solid #0073aa; margin-top: 20px; display: none; } .roi-result-item { display: flex; justify-content: space-between; margin-bottom: 12px; font-size: 16px; border-bottom: 1px dashed #ddd; padding-bottom: 8px; } .roi-result-item:last-child { border-bottom: none; font-weight: bold; font-size: 20px; color: #0073aa; } .roi-article { margin-top: 40px; } .roi-article h3 { color: #1a1a1a; margin-top: 30px; font-size: 22px; } .roi-article p { margin-bottom: 15px; } .roi-article ul { margin-bottom: 15px; padding-left: 20px; } .roi-article li { margin-bottom: 8px; } @media (max-width: 600px) { .roi-calc-grid { grid-template-columns: 1fr; } .roi-calc-button { grid-column: span 1; } }

Rental Property ROI Calculator

Total Cash Invested (Down Payment): $0.00
Monthly Mortgage Payment: $0.00
Monthly Cash Flow: $0.00
Annual Cash-on-Cash ROI: 0.00%

How to Use the Rental Property ROI Calculator

Investing in real estate is one of the most reliable ways to build long-term wealth, but the math must work before you sign a contract. Our Rental Property ROI (Return on Investment) Calculator helps you determine the profitability of a potential investment property by analyzing cash flow and the "Cash-on-Cash" return.

Understanding Key Investment Metrics

  • Purchase Price: The total cost of the property before closing costs.
  • Down Payment: The percentage of the purchase price you pay upfront. Most investment loans require 20-25%.
  • Monthly Cash Flow: This is the money left over every month after all expenses (mortgage, taxes, insurance, repairs) have been paid. A positive cash flow is essential for a healthy investment.
  • Cash-on-Cash Return: This metric measures the annual return you made on the actual cash you invested. It is calculated by dividing your annual pre-tax cash flow by the total cash invested.

Example Calculation

Let's look at a realistic scenario for an investor:

  • Property Price: $300,000
  • Down Payment: 20% ($60,000)
  • Interest Rate: 7%
  • Monthly Rent: $2,500
  • Operating Expenses: $700 (Property taxes, insurance, and maintenance reserves)

In this example, the monthly mortgage payment would be approximately $1,596. Your total monthly expenses would be $2,296 ($1,596 + $700). This leaves you with a Monthly Cash Flow of $204. Your annual cash flow is $2,448. Dividing $2,448 by your initial $60,000 investment gives you a Cash-on-Cash ROI of 4.08%.

Why Cash Flow Matters More Than Appreciation

While properties generally appreciate in value over time, savvy investors focus on cash flow. Appreciation is a "bonus," but cash flow covers the bills and ensures you can weather economic downturns without being forced to sell. Use this calculator to ensure your next investment property puts money in your pocket every single month.

function calculateRentalROI() { var price = parseFloat(document.getElementById('propPrice').value); var downPercent = parseFloat(document.getElementById('downPayment').value); var rate = parseFloat(document.getElementById('interestRate').value); var term = parseFloat(document.getElementById('loanTerm').value); var rent = parseFloat(document.getElementById('monthlyRent').value); var ops = parseFloat(document.getElementById('operatingExpenses').value); if (isNaN(price) || isNaN(downPercent) || isNaN(rate) || isNaN(term) || isNaN(rent) || isNaN(ops)) { alert("Please enter valid numeric values for all fields."); return; } // Calculations var downPaymentAmt = price * (downPercent / 100); var loanAmt = price – downPaymentAmt; var monthlyRate = (rate / 100) / 12; var totalMonths = term * 12; // Monthly Mortgage Payment Formula: [P * r * (1+r)^n] / [(1+r)^n – 1] var mortgage = 0; if (rate > 0) { mortgage = (loanAmt * monthlyRate * Math.pow(1 + monthlyRate, totalMonths)) / (Math.pow(1 + monthlyRate, totalMonths) – 1); } else { mortgage = loanAmt / totalMonths; } var totalMonthlyExpenses = mortgage + ops; var monthlyCashFlow = rent – totalMonthlyExpenses; var annualCashFlow = monthlyCashFlow * 12; // Total cash invested is the down payment (simplified, excluding closing costs) var cashOnCash = (annualCashFlow / downPaymentAmt) * 100; // Display Results document.getElementById('resCashInvested').innerText = "$" + downPaymentAmt.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resMortgage').innerText = "$" + mortgage.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resCashFlow').innerText = "$" + monthlyCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resROI').innerText = cashOnCash.toFixed(2) + "%"; document.getElementById('roiResults').style.display = "block"; }

Leave a Comment