Analyze potential real estate investments with precision
Purchase Details
Financing & Income
Monthly Expenses
Investment Analysis Results
Monthly Cash Flow
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Cash-on-Cash ROI
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Cap Rate
0.00%
Total Cash Needed
$0.00
Monthly Mortgage (P&I)
$0.00
Annual Net Operating Income (NOI)
$0.00
Gross Annual Rent
$0.00
How to Calculate Return on Investment (ROI) for Rental Property
Investing in real estate is one of the most proven paths to wealth, but success depends on accurate financial forecasting. An Investment Property ROI Calculator helps you look past the "sticker price" to understand the true profitability of a rental asset.
Understanding the Key Metrics
Our calculator focuses on the three most critical numbers for real estate investors:
Cap Rate (Capitalization Rate): This measures the property's natural rate of return, independent of financing. It is calculated by dividing the Net Operating Income (NOI) by the purchase price.
Cash-on-Cash Return (CoC): This is the "yield" on the actual money you out of pocket. If you put down $60,000 and make $6,000 in annual profit, your CoC is 10%.
Net Operating Income (NOI): This is your total income minus all operating expenses (taxes, insurance, maintenance), before mortgage payments.
Step-by-Step Example
Imagine you buy a property for $300,000. You put 20% down ($60,000) and spend $10,000 on closing costs and repairs. Your total cash invested is $70,000.
If the monthly rent is $2,500 and your total expenses (including the mortgage) are $2,000, your monthly cash flow is $500. Annually, that's $6,000. Your Cash-on-Cash ROI would be: $6,000 / $70,000 = 8.57%.
Why Expenses Matter
New investors often forget to account for CapEx (Capital Expenditures)—major repairs like a new roof or HVAC. Our calculator includes maintenance and management fields to ensure you aren't caught off guard by the hidden costs of property ownership.
function calculateRentalROI() {
// Inputs
var price = parseFloat(document.getElementById('purchasePrice').value) || 0;
var downPct = parseFloat(document.getElementById('downPaymentPct').value) || 0;
var closing = parseFloat(document.getElementById('closingCosts').value) || 0;
var repair = parseFloat(document.getElementById('repairCosts').value) || 0;
var rate = parseFloat(document.getElementById('interestRate').value) || 0;
var term = parseFloat(document.getElementById('loanTerm').value) || 0;
var rent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var extraInc = parseFloat(document.getElementById('otherIncome').value) || 0;
var tax = parseFloat(document.getElementById('propTax').value) || 0;
var ins = parseFloat(document.getElementById('insurance').value) || 0;
var maint = parseFloat(document.getElementById('maintenance').value) || 0;
var hoa = parseFloat(document.getElementById('hoaFees').value) || 0;
// Calculations
var downAmt = price * (downPct / 100);
var loanAmt = price – downAmt;
var totalInitialInvestment = downAmt + closing + repair;
// Mortgage Calculation (P&I)
var monthlyMortgage = 0;
if (rate > 0 && loanAmt > 0) {
var monthlyRate = (rate / 100) / 12;
var numPayments = term * 12;
monthlyMortgage = loanAmt * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
}
var totalMonthlyIncome = rent + extraInc;
var operatingExpenses = tax + ins + maint + hoa;
var totalMonthlyOutgo = operatingExpenses + monthlyMortgage;
var monthlyCashFlow = totalMonthlyIncome – totalMonthlyOutgo;
var annualCashFlow = monthlyCashFlow * 12;
var annualNOI = (totalMonthlyIncome – operatingExpenses) * 12;
var capRate = (annualNOI / price) * 100;
var cashOnCash = (annualCashFlow / totalInitialInvestment) * 100;
// UI Updates
document.getElementById('resultsArea').style.display = 'block';
document.getElementById('resMonthlyCashFlow').innerText = '$' + monthlyCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resCoC').innerText = cashOnCash.toFixed(2) + '%';
document.getElementById('resCapRate').innerText = capRate.toFixed(2) + '%';
document.getElementById('resTotalInvestment').innerText = '$' + totalInitialInvestment.toLocaleString();
document.getElementById('resMortgage').innerText = '$' + monthlyMortgage.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resNOI').innerText = '$' + annualNOI.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resGrossRent').innerText = '$' + (totalMonthlyIncome * 12).toLocaleString();
// Scroll to results
document.getElementById('resultsArea').scrollIntoView({ behavior: 'smooth' });
}