Analyze the profitability of your real estate investment instantly.
Property Details
Loan Details
Income & Expenses
Investment Analysis
Monthly Gross Income:$0.00
Principal & Interest:$0.00
Total Monthly Expenses:$0.00
Net Operating Income (NOI):$0.00
Monthly Cash Flow:$0.00
Cash on Cash Return:0.00%
Cap Rate:0.00%
Total Cash Invested:$0.00
Understanding Rental Property ROI
Investing in real estate is one of the most reliable ways to build wealth, but it requires precise calculation. This Rental Property Cash Flow Calculator helps investors determine if a specific property is a viable investment by analyzing key performance metrics.
Key Metrics Explained
Cash Flow: The net amount of money moving in or out of the investment each month. Positive cash flow means the property pays for itself and generates income.
Cash on Cash Return (CoC): This measures the annual return on the actual cash invested (down payment + closing costs). It is a critical metric for understanding how hard your specific dollars are working.
Net Operating Income (NOI): The total income generated by the property minus all necessary operating expenses. NOI is calculated before mortgage payments and tax expenses.
Cap Rate: A measure of a property's natural rate of return assuming it was bought with all cash. It helps compare properties regardless of financing.
How to Use This Calculator
To get an accurate assessment of your potential rental property, follow these steps:
Enter Purchase Details: Input the target purchase price and your planned down payment percentage. Don't forget closing costs, which usually range from 2-5% of the purchase price.
Input Loan Terms: Enter your expected interest rate and loan term (usually 30 years).
Estimate Operating Expenses: Be realistic about property taxes, insurance, and maintenance. We also recommend accounting for a vacancy rate (typically 5-8%) to account for months when the unit is empty.
What is a Good Cash on Cash Return?
While "good" is subjective, many real estate investors target a Cash on Cash return of 8% to 12%. In highly competitive markets, 5-7% might be acceptable if there is strong potential for appreciation. Anything above 15% is generally considered an excellent return.
Disclaimer: This calculator is for educational purposes only. Always consult with a financial advisor or real estate professional before making investment decisions.
function calculateRentalROI() {
// 1. Get Inputs
var price = parseFloat(document.getElementById('purchasePrice').value);
var downPercent = parseFloat(document.getElementById('downPayment').value);
var closingCosts = parseFloat(document.getElementById('closingCosts').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var termYears = parseFloat(document.getElementById('loanTerm').value);
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value);
var annualTaxes = parseFloat(document.getElementById('annualTaxes').value);
var annualInsurance = parseFloat(document.getElementById('annualInsurance').value);
var monthlyMaint = parseFloat(document.getElementById('monthlyMaint').value);
var vacancyRate = parseFloat(document.getElementById('vacancyRate').value);
// Validation
if (isNaN(price) || isNaN(downPercent) || isNaN(interestRate) || isNaN(termYears) || isNaN(monthlyRent)) {
alert("Please enter valid numbers for all fields.");
return;
}
// 2. Calculations
// Loan Calculations
var downPaymentAmount = price * (downPercent / 100);
var loanAmount = price – downPaymentAmount;
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = termYears * 12;
// Mortgage Payment (Principal & Interest)
// Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
var monthlyMortgage = 0;
if (interestRate > 0) {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else {
monthlyMortgage = loanAmount / numberOfPayments;
}
// Expense Calculations
var monthlyTaxes = annualTaxes / 12;
var monthlyInsurance = annualInsurance / 12;
var monthlyVacancy = monthlyRent * (vacancyRate / 100);
var totalMonthlyExpenses = monthlyTaxes + monthlyInsurance + monthlyMaint + monthlyVacancy;
// Income Metrics
var noiMonthly = monthlyRent – totalMonthlyExpenses;
var noiAnnual = noiMonthly * 12;
var cashFlowMonthly = noiMonthly – monthlyMortgage;
var cashFlowAnnual = cashFlowMonthly * 12;
var totalCashInvested = downPaymentAmount + closingCosts;
// Returns
var cashOnCash = 0;
if (totalCashInvested > 0) {
cashOnCash = (cashFlowAnnual / totalCashInvested) * 100;
}
var capRate = 0;
if (price > 0) {
capRate = (noiAnnual / price) * 100;
}
// 3. Update DOM
// Helper to format currency
var fmtMoney = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' });
document.getElementById('outGrossIncome').innerText = fmtMoney.format(monthlyRent);
document.getElementById('outMortgage').innerText = fmtMoney.format(monthlyMortgage);
document.getElementById('outExpenses').innerText = fmtMoney.format(totalMonthlyExpenses + monthlyMortgage); // Operating + Debt Service
// Correction: UI label says "Total Monthly Expenses" usually implies Operating Expenses in NOI calc contexts,
// but for cash flow it includes mortgage. Let's make the label "Total Op. Expenses + Mortgage" in logic or split them.
// For clarity in the result box, I listed P&I separately.
// So 'outExpenses' line in UI should probably reflect Operating Expenses to derive NOI,
// or Total Outflow. Let's display Operating Expenses separately for clarity.
// Update: I will display Operating Expenses (Taxes, Ins, Maint, Vacancy)
document.getElementById('outExpenses').innerText = fmtMoney.format(totalMonthlyExpenses);
document.getElementById('outNOI').innerText = fmtMoney.format(noiMonthly);
document.getElementById('outCashFlow').innerText = fmtMoney.format(cashFlowMonthly);
document.getElementById('outTotalCash').innerText = fmtMoney.format(totalCashInvested);
document.getElementById('outCoC').innerText = cashOnCash.toFixed(2) + "%";
document.getElementById('outCapRate').innerText = capRate.toFixed(2) + "%";
// Styling based on profitability
var cfElement = document.getElementById('outCashFlow');
if (cashFlowMonthly < 0) {
cfElement.classList.add('negative');
cfElement.classList.remove('highlight');
} else {
cfElement.classList.remove('negative');
cfElement.classList.add('highlight');
}
}