/* Calculator & Content Styles */
#rp-calculator-container {
font-family: 'Segoe UI', Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 20px auto;
background: #ffffff;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 4px 12px rgba(0,0,0,0.05);
padding: 0;
overflow: hidden;
}
.rp-calc-header {
background: #2c3e50;
color: #fff;
padding: 20px;
text-align: center;
}
.rp-calc-header h2 {
margin: 0;
font-size: 24px;
}
.rp-calc-body {
padding: 25px;
display: flex;
flex-wrap: wrap;
gap: 30px;
}
.rp-column {
flex: 1;
min-width: 300px;
}
.rp-input-group {
margin-bottom: 15px;
}
.rp-input-group label {
display: block;
font-weight: 600;
margin-bottom: 5px;
color: #333;
font-size: 14px;
}
.rp-input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.rp-input-group input:focus {
border-color: #3498db;
outline: none;
}
.rp-btn {
width: 100%;
padding: 12px;
background-color: #27ae60;
color: white;
border: none;
border-radius: 4px;
font-size: 16px;
font-weight: bold;
cursor: pointer;
transition: background 0.3s;
margin-top: 10px;
}
.rp-btn:hover {
background-color: #219150;
}
.rp-results-box {
background: #f8f9fa;
border: 1px solid #e9ecef;
border-radius: 6px;
padding: 20px;
}
.rp-result-row {
display: flex;
justify-content: space-between;
margin-bottom: 12px;
padding-bottom: 12px;
border-bottom: 1px solid #e0e0e0;
font-size: 15px;
}
.rp-result-row:last-child {
border-bottom: none;
margin-bottom: 0;
padding-bottom: 0;
}
.rp-result-label {
color: #555;
}
.rp-result-value {
font-weight: bold;
color: #2c3e50;
}
.rp-highlight {
color: #27ae60;
font-size: 18px;
}
.rp-negative {
color: #e74c3c;
}
/* Article Styles */
#rp-article-content {
max-width: 800px;
margin: 40px auto;
font-family: 'Segoe UI', Roboto, sans-serif;
line-height: 1.6;
color: #333;
}
#rp-article-content h2 {
color: #2c3e50;
border-bottom: 2px solid #3498db;
padding-bottom: 10px;
margin-top: 30px;
}
#rp-article-content h3 {
color: #34495e;
margin-top: 25px;
}
#rp-article-content p {
margin-bottom: 15px;
}
#rp-article-content ul {
margin-bottom: 15px;
padding-left: 20px;
}
#rp-article-content li {
margin-bottom: 8px;
}
.rp-example-box {
background-color: #e8f4f8;
padding: 20px;
border-left: 5px solid #3498db;
margin: 20px 0;
}
@media (max-width: 600px) {
.rp-calc-body {
flex-direction: column;
}
}
Understanding Rental Property ROI
Investing in real estate is one of the most reliable ways to build wealth, but not every property is a good deal. To succeed, investors must look beyond the purchase price and analyze the potential return on investment (ROI). This Rental Property ROI Calculator helps you evaluate the profitability of a potential investment by breaking down cash flow, Cash on Cash Return, and Cap Rate.
Key Metrics Explained
1. Monthly Cash Flow
This is the money left over after all expenses are paid. It is calculated by subtracting your total monthly expenses (mortgage, taxes, insurance, maintenance, vacancy reserves) from your gross rental income. Positive cash flow means the property pays for itself and generates profit.
2. Cash on Cash ROI (CoC)
This metric measures the annual return on the actual cash you invested (down payment + closing costs + rehab costs). It allows you to compare real estate returns against other investment vehicles like stocks or bonds.
- Formula: (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
3. Cap Rate (Capitalization Rate)
The Cap Rate indicates the rate of return on a real estate investment property based on the income that the property is expected to generate, ignoring financing leverage. It helps compare the profitability of similar properties regardless of how they are paid for.
- Formula: (Net Operating Income / Purchase Price) × 100
Real World Example
Let's say you buy a property for $250,000 with 20% down ($50,000). Your closing costs are $5,000, so your total cash invested is $55,000.
- Rent: $2,200/month
- Mortgage (6.5% interest): ~$1,264/month
- Expenses (Taxes, Ins, Maint): $500/month
- Vacancy (5%): $110/month
Total Outflow: $1,874/month
Cash Flow: $2,200 – $1,874 = $326/month ($3,912/year)
Cash on Cash ROI: ($3,912 / $55,000) = 7.11%
How to Use This Calculator
To get the most accurate results, ensure you estimate your "Monthly Expenses" conservatively. This field should include Property Taxes, Homeowners Insurance, HOA fees (if applicable), and a budget for repairs and maintenance (typically 5-10% of rent). The calculator automatically accounts for vacancy loss based on the percentage you input.
What is a Good ROI?
While "good" is subjective, many investors aim for a Cash on Cash ROI of 8-12%. However, in high-appreciation markets, investors might accept a lower cash flow return (e.g., 4-6%) banking on the property's value increasing over time. Conversely, in lower-cost areas with less appreciation potential, investors often demand higher cash flow returns (12%+).
function calculateRentalROI() {
// 1. Get Inputs by ID
var priceInput = document.getElementById("rp_price");
var downPercentInput = document.getElementById("rp_down_percent");
var closingCostsInput = document.getElementById("rp_closing_costs");
var interestRateInput = document.getElementById("rp_interest_rate");
var termInput = document.getElementById("rp_term");
var rentInput = document.getElementById("rp_rent");
var expensesInput = document.getElementById("rp_expenses");
var vacancyInput = document.getElementById("rp_vacancy");
// 2. Parse values (handle empty inputs as 0)
var price = parseFloat(priceInput.value) || 0;
var downPercent = parseFloat(downPercentInput.value) || 0;
var closingCosts = parseFloat(closingCostsInput.value) || 0;
var interestRate = parseFloat(interestRateInput.value) || 0;
var termYears = parseFloat(termInput.value) || 0;
var monthlyRent = parseFloat(rentInput.value) || 0;
var monthlyExpenses = parseFloat(expensesInput.value) || 0;
var vacancyRate = parseFloat(vacancyInput.value) || 0;
// 3. Validation Logic
if (price <= 0 || termYears 0) {
cashOnCashRoi = (annualCashFlow / totalCashInvested) * 100;
}
var capRate = 0;
if (price > 0) {
capRate = (noiAnnual / price) * 100;
}
// 5. Update UI
// Helper to format currency
function formatMoney(num) {
return "$" + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
document.getElementById("res_cash_flow").innerText = formatMoney(monthlyCashFlow);
document.getElementById("res_coc_roi").innerText = cashOnCashRoi.toFixed(2) + "%";
document.getElementById("res_cap_rate").innerText = capRate.toFixed(2) + "%";
document.getElementById("res_total_cash").innerText = formatMoney(totalCashInvested);
document.getElementById("res_mortgage").innerText = formatMoney(monthlyMortgage);
document.getElementById("res_opex").innerText = formatMoney(totalOperatingExpenses); // Includes vacancy + hard costs
document.getElementById("res_vacancy").innerText = formatMoney(vacancyLoss);
document.getElementById("res_total_outflow").innerText = formatMoney(totalMonthlyOutflow);
// Style updates for positive/negative cash flow
var cfElement = document.getElementById("res_cash_flow");
if (monthlyCashFlow < 0) {
cfElement.classList.add("rp-negative");
cfElement.classList.remove("rp-highlight");
} else {
cfElement.classList.remove("rp-negative");
cfElement.classList.add("rp-highlight");
}
}