#rental-roi-calculator-containerBox { box-sizing: border-box; }
.rrc-header { background: #2c3e50; color: #fff; padding: 20px; border-radius: 8px 8px 0 0; text-align: center; }
.rrc-header h2 { margin: 0; font-size: 24px; }
.rrc-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 20px; padding: 25px; }
.rrc-input-group { margin-bottom: 15px; }
.rrc-input-group label { display: block; margin-bottom: 5px; font-weight: 600; color: #333; font-size: 14px; }
.rrc-input-group input, .rrc-input-group select { width: 100%; padding: 10px; border: 1px solid #ddd; border-radius: 4px; font-size: 16px; box-sizing: border-box; }
.rrc-input-group input:focus { border-color: #3498db; outline: none; }
.rrc-btn-container { grid-column: 1 / -1; text-align: center; margin-top: 10px; }
.rrc-btn { background: #27ae60; color: white; border: none; padding: 15px 30px; font-size: 18px; font-weight: bold; border-radius: 4px; cursor: pointer; transition: background 0.3s; width: 100%; }
.rrc-btn:hover { background: #219150; }
.rrc-results { grid-column: 1 / -1; background: #f8f9fa; padding: 20px; border-radius: 6px; border-left: 5px solid #3498db; display: none; margin-top: 20px; }
.rrc-result-row { display: flex; justify-content: space-between; padding: 10px 0; border-bottom: 1px solid #eee; }
.rrc-result-row:last-child { border-bottom: none; }
.rrc-result-label { color: #555; }
.rrc-result-value { font-weight: bold; color: #2c3e50; }
.rrc-highlight { color: #27ae60; font-size: 1.2em; }
.rrc-article { padding: 25px; border-top: 1px solid #eee; color: #444; line-height: 1.6; }
.rrc-article h3 { color: #2c3e50; margin-top: 20px; }
@media (max-width: 600px) { .rrc-grid { grid-template-columns: 1fr; } }
function calculateRentalROI() {
// 1. Get Input Values
var price = parseFloat(document.getElementById('rrc_price').value) || 0;
var downPercent = parseFloat(document.getElementById('rrc_down_percent').value) || 0;
var closingCosts = parseFloat(document.getElementById('rrc_closing_costs').value) || 0;
var interestRate = parseFloat(document.getElementById('rrc_interest_rate').value) || 0;
var loanYears = parseFloat(document.getElementById('rrc_loan_term').value) || 30;
var rent = parseFloat(document.getElementById('rrc_rent').value) || 0;
var propTaxYearly = parseFloat(document.getElementById('rrc_prop_tax').value) || 0;
var insuranceYearly = parseFloat(document.getElementById('rrc_insurance').value) || 0;
var hoaMonthly = parseFloat(document.getElementById('rrc_hoa').value) || 0;
var maintenancePercent = parseFloat(document.getElementById('rrc_maintenance').value) || 0;
// 2. Calculate Initial Investment
var downPaymentAmt = price * (downPercent / 100);
var loanAmount = price – downPaymentAmt;
var totalInitialCash = downPaymentAmt + closingCosts;
// 3. Calculate Mortgage Payment (Amortization)
// M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
var monthlyRate = (interestRate / 100) / 12;
var numPayments = loanYears * 12;
var monthlyMortgage = 0;
if (interestRate === 0) {
monthlyMortgage = loanAmount / numPayments;
} else {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
}
// 4. Calculate Monthly Expenses
var monthlyTax = propTaxYearly / 12;
var monthlyInsurance = insuranceYearly / 12;
var monthlyMaintenance = rent * (maintenancePercent / 100);
var totalMonthlyExpenses = monthlyMortgage + monthlyTax + monthlyInsurance + hoaMonthly + monthlyMaintenance;
// 5. Calculate Cash Flow and ROI
var monthlyCashFlow = rent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
var roi = 0;
if (totalInitialCash > 0) {
roi = (annualCashFlow / totalInitialCash) * 100;
}
// 6. Display Results
document.getElementById('res_initial_cash').innerText = "$" + totalInitialCash.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
document.getElementById('res_mortgage').innerText = "$" + monthlyMortgage.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res_expenses').innerText = "$" + totalMonthlyExpenses.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
var cashFlowEl = document.getElementById('res_cashflow');
cashFlowEl.innerText = "$" + monthlyCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
cashFlowEl.style.color = monthlyCashFlow >= 0 ? "#27ae60" : "#c0392b";
var annualCashFlowEl = document.getElementById('res_annual_cashflow');
annualCashFlowEl.innerText = "$" + annualCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
annualCashFlowEl.style.color = annualCashFlow >= 0 ? "#27ae60" : "#c0392b";
var roiEl = document.getElementById('res_roi');
roiEl.innerText = roi.toFixed(2) + "%";
roiEl.style.color = roi >= 0 ? "#27ae60" : "#c0392b";
document.getElementById('rrc_results').style.display = 'block';
}
Rental Property ROI Calculator
30 Years
15 Years
Total Initial Cash Needed:
Monthly Mortgage P&I:
Total Monthly Expenses:
Monthly Cash Flow:
Annual Cash Flow:
Cash-on-Cash ROI:
How to Calculate 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, you must accurately calculate your Cash-on-Cash Return on Investment (ROI). This calculator helps investors determine the viability of a rental property by analyzing cash flow against the initial capital invested.
Understanding the Metrics
- Cash Flow: This is the net profit you pocket every month. It is calculated by taking your gross rental income and subtracting all expenses, including mortgage payments, taxes, insurance, and maintenance reserves. A positive cash flow indicates a healthy investment.
- Cash-on-Cash ROI: This metric tells you how hard your money is working. Unlike a simple cap rate, this calculates the return specifically on the actual cash you put into the deal (down payment + closing costs), giving a more accurate picture of your leverage.
- The 1% Rule: A common "rule of thumb" in real estate is that the monthly rent should be at least 1% of the purchase price. While not applicable in every market, it serves as a quick filter for potential deals.
Hidden Costs to Watch For
Many new investors fail because they underestimate expenses. Always account for:
- Vacancy Rates: Your property won't be rented 365 days a year. Budgeting 5-8% for vacancy is prudent.
- Maintenance & CapEx: Roofs leak and water heaters break. Setting aside 5-10% of monthly rent ensures you aren't caught off guard by large capital expenditures.
- Property Management: Even if you plan to self-manage, include this cost (typically 8-10%) in your calculation to see if the deal still makes sense if you later decide to hire a manager.