Mortgage Loan Amortization Calculator

function calculateROI() { var price = parseFloat(document.getElementById('propPrice').value); var downPct = parseFloat(document.getElementById('downPayment').value) / 100; var rate = parseFloat(document.getElementById('interestRate').value) / 100 / 12; var term = parseFloat(document.getElementById('loanTerm').value) * 12; var rent = parseFloat(document.getElementById('monthlyRent').value); var operExp = parseFloat(document.getElementById('monthlyExpenses').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 totalMonthlyOutgo = mortgage + operExp; var monthlyCashFlow = rent – totalMonthlyOutgo; // Cap Rate = Net Operating Income / Purchase Price // NOI = Annual Rent – Annual Operating Expenses (Excluding Mortgage) var annualNOI = (rent – operExp) * 12; var capRate = (annualNOI / price) * 100; // Cash on Cash Return = Annual Cash Flow / Total Cash Invested var annualCashFlow = monthlyCashFlow * 12; var cocReturn = (annualCashFlow / downPaymentAmt) * 100; document.getElementById('resMortgage').innerText = "$" + mortgage.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTotalExpenses').innerText = "$" + totalMonthlyOutgo.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resCashFlow').innerText = "$" + monthlyCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resCapRate').innerText = capRate.toFixed(2) + "%"; document.getElementById('resCoC').innerText = cocReturn.toFixed(2) + "%"; document.getElementById('results').style.display = "block"; }

Understanding Your Rental Property ROI

Investing in real estate is one of the most proven ways to build long-term wealth. However, the difference between a "good deal" and a "money pit" often comes down to the math. Our Rental Property ROI Calculator helps you dissect the numbers before you sign a contract.

Key Metrics Explained

• Monthly Cash Flow: This is the net amount of money moving into your pocket every month after all bills—including the mortgage—are paid. Positive cash flow is vital for sustainability.
• Cap Rate (Capitalization Rate): This measures the property's natural rate of return without considering financing. It is calculated by taking the Net Operating Income (NOI) divided by the purchase price.
• Cash on Cash Return (CoC): This is often considered the most important metric for investors using leverage. It calculates the annual return based specifically on the actual cash you invested (your down payment), rather than the total property value.

Example Calculation

Imagine you are looking at a single-family home with the following stats:

Metric	Value
Purchase Price	$250,000
Down Payment (20%)	$50,000
Monthly Rent	$2,200
Expenses (Tax, Ins, Maint)	$550
Monthly Mortgage Payment	$1,264

In this scenario, your Monthly Cash Flow would be $386 ($2,200 – $550 – $1,264). Your Cash on Cash Return would be 9.26%, which is generally considered a strong return in many real estate markets.

How to Improve Your ROI

If the numbers don't look as high as you'd like, consider these three strategies:

1. Increase the Rent: Can small cosmetic upgrades justify a $100-$200 monthly rent increase?
2. Lower Operating Expenses: Shop around for better insurance rates or handle minor maintenance tasks yourself.
3. Negotiate Price: Every $5,000 off the purchase price directly improves your Cap Rate and Cash on Cash return.

*Note: Monthly expenses should include property taxes, insurance, repairs, vacancy allowance (usually 5-8%), and property management fees.