Rental Property ROI Calculator
/* Calculator Styles */
.roi-calc-wrapper {
max-width: 800px;
margin: 20px auto;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
color: #333;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
background: #ffffff;
overflow: hidden;
}
.roi-calc-header {
background: #2c3e50;
color: #fff;
padding: 20px;
text-align: center;
}
.roi-calc-header h2 {
margin: 0;
font-size: 24px;
}
.roi-calc-body {
padding: 25px;
display: flex;
flex-wrap: wrap;
gap: 30px;
}
.roi-input-section, .roi-results-section {
flex: 1 1 300px;
}
.roi-input-group {
margin-bottom: 15px;
}
.roi-input-group label {
display: block;
font-weight: 600;
margin-bottom: 5px;
font-size: 14px;
color: #555;
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.roi-input-group input, .roi-input-group select {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
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.roi-input-group input:focus {
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outline: none;
box-shadow: 0 0 5px rgba(52,152,219,0.3);
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.roi-btn {
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padding: 12px;
background-color: #27ae60;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.3s;
margin-top: 10px;
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.roi-btn:hover {
background-color: #219150;
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.roi-results-card {
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border: 1px solid #ddd;
border-radius: 6px;
padding: 20px;
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.roi-result-row {
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justify-content: space-between;
align-items: center;
padding: 10px 0;
border-bottom: 1px solid #eee;
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.roi-result-row:last-child {
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.roi-result-label {
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.roi-result-value {
font-weight: bold;
font-size: 18px;
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.roi-highlight {
color: #27ae60;
font-size: 22px;
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.roi-error {
color: #e74c3c;
text-align: center;
margin-top: 10px;
display: none;
}
/* SEO Content Styles */
.roi-content {
max-width: 800px;
margin: 40px auto;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
line-height: 1.6;
color: #333;
padding: 0 20px;
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.roi-content h2 {
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border-bottom: 2px solid #ecf0f1;
padding-bottom: 10px;
margin-top: 30px;
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.roi-content h3 {
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margin-top: 25px;
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.roi-content ul {
background: #f9f9f9;
padding: 20px 40px;
border-radius: 5px;
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.roi-content p {
margin-bottom: 15px;
}
Financial Analysis
Monthly Cash Flow
$0.00
Net Operating Income (NOI) / Yr
$0.00
Mortgage Payment / Mo
$0.00
Cash on Cash Return
0.00%
Cap Rate
0.00%
Total Cash Invested
$0.00
Insight: Enter your property details to see investment performance.
function calculateRentalROI() {
// 1. Get Input Elements
var priceInput = document.getElementById("propPrice");
var downInput = document.getElementById("propDown");
var closingInput = document.getElementById("propClosing");
var rateInput = document.getElementById("propRate");
var termInput = document.getElementById("propTerm");
var rentInput = document.getElementById("propRent");
var expInput = document.getElementById("propExp");
var vacancyInput = document.getElementById("propVacancy");
var errorDiv = document.getElementById("roiError");
// 2. Parse Values
var price = parseFloat(priceInput.value);
var downPayment = parseFloat(downInput.value);
var closingCosts = parseFloat(closingInput.value);
var rate = parseFloat(rateInput.value);
var termYears = parseFloat(termInput.value);
var monthlyRent = parseFloat(rentInput.value);
var monthlyExpenses = parseFloat(expInput.value);
var vacancyRate = parseFloat(vacancyInput.value);
// 3. Validation
if (isNaN(price) || isNaN(downPayment) || isNaN(rate) || isNaN(monthlyRent) || isNaN(monthlyExpenses)) {
errorDiv.style.display = "block";
return;
}
errorDiv.style.display = "none";
// 4. Mortgage Calculation
var loanAmount = price – downPayment;
var monthlyRate = (rate / 100) / 12;
var totalPayments = termYears * 12;
var monthlyMortgage = 0;
// Handle case if buying cash or 0% interest
if (rate === 0) {
if (termYears > 0) {
monthlyMortgage = loanAmount / totalPayments;
} else {
monthlyMortgage = 0;
}
} else {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, totalPayments)) / (Math.pow(1 + monthlyRate, totalPayments) – 1);
}
// 5. Income & Expense Calculation
var grossAnnualRent = monthlyRent * 12;
var vacancyCost = grossAnnualRent * (vacancyRate / 100);
var effectiveGrossIncome = grossAnnualRent – vacancyCost;
var annualOperatingExpenses = monthlyExpenses * 12;
var netOperatingIncome = effectiveGrossIncome – annualOperatingExpenses; // NOI
var annualDebtService = monthlyMortgage * 12;
var annualCashFlow = netOperatingIncome – annualDebtService;
var monthlyCashFlow = annualCashFlow / 12;
// 6. ROI Metrics
var totalCashInvested = downPayment + closingCosts;
var cashOnCashReturn = 0;
if (totalCashInvested > 0) {
cashOnCashReturn = (annualCashFlow / totalCashInvested) * 100;
}
var capRate = 0;
if (price > 0) {
capRate = (netOperatingIncome / price) * 100;
}
// 7. Update UI
document.getElementById("resCashFlow").innerHTML = formatCurrency(monthlyCashFlow);
document.getElementById("resNOI").innerHTML = formatCurrency(netOperatingIncome);
document.getElementById("resMortgage").innerHTML = formatCurrency(monthlyMortgage);
document.getElementById("resCoc").innerHTML = cashOnCashReturn.toFixed(2) + "%";
document.getElementById("resCap").innerHTML = capRate.toFixed(2) + "%";
document.getElementById("resTotalInvested").innerHTML = formatCurrency(totalCashInvested);
// Dynamic Insight
var insightText = "";
if (cashOnCashReturn > 8) {
insightText = "This property shows a strong Cash on Cash return (over 8%). It may be a solid investment for cash flow.";
} else if (cashOnCashReturn > 0) {
insightText = "The property is cash flow positive, but the returns are modest. Ensure appreciation potential justifies the lower yield.";
} else {
insightText = "Warning: This property currently projects negative cash flow. You will be paying out of pocket monthly.";
document.getElementById("resCashFlow").style.color = "#e74c3c";
}
document.getElementById("roiInsight").innerHTML = insightText;
if(monthlyCashFlow >= 0) {
document.getElementById("resCashFlow").style.color = "#27ae60";
}
}
function formatCurrency(num) {
return "$" + num.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
}
// Initial Calculation on load
window.onload = function() {
calculateRentalROI();
};
Understanding Your Rental Property ROI
Investing in real estate is one of the most reliable ways to build wealth, but simply buying a property doesn't guarantee profit. To succeed, investors must analyze the numbers rigorously. Our Rental Property ROI Calculator helps you determine the viability of a potential investment by breaking down cash flow, Cap Rate, and Cash on Cash Return.
Key Metrics Explained
When analyzing a rental property, there are three primary metrics you need to understand to ensure you are making a sound financial decision:
- Cash Flow: This is the profit you take home each month after all expenses (mortgage, taxes, insurance, repairs) are paid. Positive cash flow is essential for sustainable investing.
- Cash on Cash Return (CoC): This measures the annual return on the actual cash you invested (down payment + closing costs). It gives you a clear picture of how hard your money is working compared to other investment vehicles like the stock market.
- Cap Rate (Capitalization Rate): This metric evaluates the profitability of the property irrespective of financing. It is calculated by dividing the Net Operating Income (NOI) by the property's purchase price. It is useful for comparing different properties side-by-side.
How to Calculate Net Operating Income (NOI)
Net Operating Income is the foundation of real estate analysis. The formula used in this calculator is:
NOI = (Gross Annual Rent – Vacancy Loss) – Operating Expenses
Note that mortgage payments are not included in NOI. Mortgage payments are considered "debt service" and are subtracted from NOI to determine your actual Cash Flow.
Frequently Asked Questions
What is a good Cash on Cash Return?
While targets vary by investor and market, a Cash on Cash return of 8% to 12% is generally considered good for residential rental properties. In highly competitive markets, investors might accept 4-6% if they expect significant property appreciation.
Why do I need to include a vacancy rate?
No property is rented 100% of the time. Tenants move out, and turnover takes time. Including a vacancy rate (typically 5% to 8%) ensures your financial projections are realistic and you have a buffer for months when no rent is coming in.
Should I focus on Cap Rate or Cash Flow?
If you are financing the property (taking a loan), Cash Flow and Cash on Cash Return are usually more important because they account for your debt service. If you are buying with all cash, Cap Rate is the primary metric to watch.