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Investment Property ROI Calculator

Investment Analysis

Monthly Mortgage:

Monthly Cash Flow:

Cap Rate:

Cash-on-Cash Return:

Initial Cash Investment:

Annual Net Operating Income:

function calculateInvestmentROI() { var price = parseFloat(document.getElementById('propPrice').value); var downP = parseFloat(document.getElementById('downPercent').value); var rate = parseFloat(document.getElementById('intRate').value); var term = parseFloat(document.getElementById('loanTerm').value); var rent = parseFloat(document.getElementById('monthlyRent').value); var expenses = parseFloat(document.getElementById('monthlyExp').value); if (isNaN(price) || isNaN(downP) || isNaN(rent)) { alert("Please enter valid numeric values."); return; } var downPaymentAmount = price * (downP / 100); var loanAmount = price – downPaymentAmount; var monthlyRate = (rate / 100) / 12; var numberOfPayments = term * 12; var monthlyMortgage = 0; if (rate > 0) { monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1); } else { monthlyMortgage = loanAmount / numberOfPayments; } var totalMonthlyOutgo = monthlyMortgage + expenses; var monthlyCashFlow = rent – totalMonthlyOutgo; var annualCashFlow = monthlyCashFlow * 12; var annualGrossRent = rent * 12; var annualExpensesNoMortgage = expenses * 12; var noi = annualGrossRent – annualExpensesNoMortgage; var capRate = (noi / price) * 100; var cashOnCash = (annualCashFlow / downPaymentAmount) * 100; document.getElementById('resMortgage').innerText = "$" + monthlyMortgage.toFixed(2); document.getElementById('resCashFlow').innerText = "$" + monthlyCashFlow.toFixed(2); document.getElementById('resCapRate').innerText = capRate.toFixed(2) + "%"; document.getElementById('resCoC').innerText = cashOnCash.toFixed(2) + "%"; document.getElementById('resTotalInvest').innerText = "$" + downPaymentAmount.toLocaleString(); document.getElementById('resNOI').innerText = "$" + noi.toLocaleString(); document.getElementById('roiResult').style.display = "block"; }

Understanding Investment Property ROI

Investing in real estate is one of the most proven ways to build long-term wealth, but the "deal" is only as good as the numbers. Our Investment Property ROI Calculator helps you peel back the layers of a potential rental property to see if it actually generates profit.

Key Metrics Explained

  • Cap Rate (Capitalization Rate): This measures the property's natural rate of return without considering financing. It is calculated by dividing Net Operating Income (NOI) by the purchase price. A "good" cap rate usually falls between 4% and 10% depending on the market.
  • Cash-on-Cash Return: This is the most critical metric for investors using leverage (mortgages). It measures the annual cash flow relative to the actual cash you invested (your down payment).
  • Net Operating Income (NOI): The total income generated by the property minus all operating expenses (taxes, insurance, maintenance), excluding mortgage payments.
  • Monthly Cash Flow: The "cold hard cash" left in your pocket every month after every single bill—including the mortgage—is paid.

Example Scenario

Imagine you buy a duplex for $300,000. You put 20% down ($60,000) and secure a mortgage at 6.5%. If the total monthly rent is $2,500 and your non-mortgage expenses (tax, insurance, repairs) are $600, your monthly mortgage would be roughly $1,517.

Your net monthly cash flow would be $383. While that might seem small, your Cash-on-Cash return would be approximately 7.6%, and you are building equity as the tenant pays down your loan.

Why Use This Calculator?

Professional real estate investors never buy based on "gut feeling." They use data to compare properties across different neighborhoods. By inputting realistic maintenance costs (typically 1% of property value per year) and vacancy rates, you can avoid "money pits" and ensure your portfolio grows consistently.

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