Rental Property ROI Calculator
/* Calculator Styles */
.roi-calc-container {
max-width: 800px;
margin: 0 auto;
padding: 20px;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
background: #ffffff;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.roi-header {
text-align: center;
margin-bottom: 25px;
}
.roi-header h2 {
color: #2c3e50;
margin: 0 0 10px 0;
}
.roi-form-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.roi-form-grid {
grid-template-columns: 1fr;
}
}
.roi-input-group {
display: flex;
flex-direction: column;
}
.roi-input-group label {
font-weight: 600;
font-size: 14px;
color: #555;
margin-bottom: 5px;
}
.roi-input-group input {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
}
.roi-input-group input:focus {
border-color: #3498db;
outline: none;
}
.section-title {
grid-column: 1 / -1;
font-size: 18px;
font-weight: bold;
color: #34495e;
margin-top: 15px;
border-bottom: 2px solid #ecf0f1;
padding-bottom: 5px;
}
.roi-btn {
grid-column: 1 / -1;
background-color: #27ae60;
color: white;
border: none;
padding: 15px;
font-size: 18px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
transition: background 0.3s;
margin-top: 10px;
}
.roi-btn:hover {
background-color: #219150;
}
.roi-results {
margin-top: 30px;
background-color: #f8f9fa;
padding: 20px;
border-radius: 6px;
border: 1px solid #dee2e6;
display: none; /* Hidden by default */
}
.roi-results.active {
display: block;
}
.result-grid {
display: grid;
grid-template-columns: repeat(2, 1fr);
gap: 15px;
}
.result-item {
background: white;
padding: 15px;
border-radius: 4px;
box-shadow: 0 1px 3px rgba(0,0,0,0.1);
text-align: center;
}
.result-label {
font-size: 13px;
color: #7f8c8d;
text-transform: uppercase;
letter-spacing: 0.5px;
}
.result-value {
font-size: 24px;
font-weight: 700;
color: #2c3e50;
margin-top: 5px;
}
.positive { color: #27ae60; }
.negative { color: #c0392b; }
/* Article Styles */
.roi-article {
max-width: 800px;
margin: 40px auto;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
line-height: 1.6;
color: #333;
}
.roi-article h2 {
color: #2c3e50;
border-bottom: 2px solid #3498db;
padding-bottom: 10px;
margin-top: 30px;
}
.roi-article h3 {
color: #34495e;
margin-top: 25px;
}
.roi-article ul {
background: #f9f9f9;
padding: 20px 40px;
border-radius: 5px;
border-left: 4px solid #3498db;
}
.roi-article p {
margin-bottom: 15px;
}
Investment Analysis
Net Operating Income (Yr)
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function calculateROI() {
// Get Inputs
var price = parseFloat(document.getElementById('purchasePrice').value);
var closingCosts = parseFloat(document.getElementById('closingCosts').value) || 0;
var downPercent = parseFloat(document.getElementById('downPayment').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var years = parseFloat(document.getElementById('loanTerm').value);
var rent = parseFloat(document.getElementById('monthlyRent').value);
var annualTax = parseFloat(document.getElementById('propTax').value) || 0;
var annualIns = parseFloat(document.getElementById('insurance').value) || 0;
var monthlyHOA = parseFloat(document.getElementById('hoa').value) || 0;
var maintPercent = parseFloat(document.getElementById('maintenance').value) || 0;
// Validation
if (isNaN(price) || isNaN(downPercent) || isNaN(interestRate) || isNaN(years) || isNaN(rent)) {
alert("Please fill in all required fields (Price, Down Payment, Rate, Term, Rent).");
return;
}
// 1. Calculate Mortgage
var downPaymentAmount = price * (downPercent / 100);
var loanAmount = price – downPaymentAmount;
var monthlyRate = (interestRate / 100) / 12;
var numPayments = years * 12;
var mortgagePayment = 0;
if (interestRate === 0) {
mortgagePayment = loanAmount / numPayments;
} else {
mortgagePayment = (loanAmount * monthlyRate) / (1 – Math.pow(1 + monthlyRate, -numPayments));
}
// 2. Calculate Expenses
var monthlyTax = annualTax / 12;
var monthlyIns = annualIns / 12;
var monthlyMaint = rent * (maintPercent / 100); // Reserve for maintenance & vacancy
var totalOperatingExpenses = monthlyTax + monthlyIns + monthlyHOA + monthlyMaint; // Excluding mortgage
var totalMonthlyExpenses = totalOperatingExpenses + mortgagePayment;
// 3. Calculate Income & Cash Flow
var monthlyCashFlow = rent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// 4. Calculate Net Operating Income (NOI)
// NOI = Income – Operating Expenses (Excluding Financing/Mortgage)
var annualNOI = (rent * 12) – (totalOperatingExpenses * 12);
// 5. Calculate Returns
var totalCashInvested = downPaymentAmount + closingCosts;
// Cash on Cash Return = Annual Cash Flow / Total Cash Invested
var cocReturn = (annualCashFlow / totalCashInvested) * 100;
// Cap Rate = NOI / Purchase Price
var capRate = (annualNOI / price) * 100;
// Display Results
var resArea = document.getElementById('resultsArea');
resArea.classList.add('active');
// Helper for formatting currency
var fmtMoney = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' });
var fmtPercent = new Intl.NumberFormat('en-US', { style: 'percent', minimumFractionDigits: 2 });
// Update DOM
var cashFlowEl = document.getElementById('resCashFlow');
cashFlowEl.innerHTML = fmtMoney.format(monthlyCashFlow);
cashFlowEl.className = 'result-value ' + (monthlyCashFlow >= 0 ? 'positive' : 'negative');
var cocEl = document.getElementById('resCOC');
cocEl.innerHTML = cocReturn.toFixed(2) + '%';
cocEl.className = 'result-value ' + (cocReturn >= 0 ? 'positive' : 'negative');
document.getElementById('resCapRate').innerHTML = capRate.toFixed(2) + '%';
document.getElementById('resNOI').innerHTML = fmtMoney.format(annualNOI);
document.getElementById('resCashNeeded').innerHTML = fmtMoney.format(totalCashInvested);
document.getElementById('resMortgage').innerHTML = fmtMoney.format(mortgagePayment);
}
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 determine if a rental property is worth your time and money, you must calculate the Return on Investment (ROI). This Rental Property ROI Calculator helps investors analyze the potential profitability of a purchase by breaking down monthly expenses, mortgage obligations, and cash flow metrics.
Key Metrics Calculated
Our calculator focuses on three critical financial indicators that every real estate investor should know:
- Cash Flow: This is the net amount of money moving in or out of the investment each month. It is calculated by subtracting total monthly expenses (mortgage, taxes, insurance, HOA, maintenance reserves) from the monthly rental income. Positive cash flow means the property pays for itself and generates profit.
- Cash on Cash Return (CoC): This metric measures the annual return you earn on the actual cash you invested (down payment + closing costs). Unlike general ROI, CoC ignores the loan amount and focuses purely on the efficiency of your cash deployment. A CoC return of 8-12% is often considered a solid benchmark for rental properties.
- Cap Rate (Capitalization Rate): The Cap Rate measures the natural rate of return of the property assuming it was bought with all cash. It is calculated by dividing the Net Operating Income (NOI) by the property's purchase price. This helps compare properties across different areas without the skewing effect of financing.
How to Use This Calculator
To get the most accurate results, ensure you have realistic estimates for the following inputs:
- Purchase Price & Loan Details: Enter the agreed-upon price and your financing terms. The interest rate significantly impacts your monthly cash flow.
- Expenses: Don't underestimate expenses. Property taxes and insurance are mandatory fixed costs.
- Maintenance & Vacancy Reserve: It is prudent to set aside 5-10% of monthly rent for repairs and periods where the unit is empty. Our calculator allows you to input this percentage to calculate a realistic "Net Operating Income."
Example Scenario
Imagine you purchase a property for $200,000 with 20% down ($40,000). Your loan is at 6.5% interest for 30 years. You expect to rent it for $1,800/month.
After factoring in taxes ($3,000/yr), insurance ($1,000/yr), and a 10% maintenance reserve, you might find that your mortgage is roughly $1,011. Your total monthly expenses could be around $1,524. This leaves a positive cash flow of $276/month. By analyzing these numbers before you buy, you can avoid properties that drain your bank account and focus on those that grow your portfolio.