Analyze your real estate investment performance instantly.
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Investment Analysis
Total Upfront Cash Required:
Monthly Mortgage Payment (P&I):
Total Monthly Expenses:
Monthly Cash Flow:
Annual Cash Flow:
Cash on Cash Return (ROI):
Cap Rate:
function calculateRentalROI() {
var price = parseFloat(document.getElementById('purchasePrice').value);
var downPercent = parseFloat(document.getElementById('downPayment').value);
var closing = parseFloat(document.getElementById('closingCosts').value) || 0;
var rate = parseFloat(document.getElementById('interestRate').value);
var term = parseFloat(document.getElementById('loanTerm').value);
var rent = parseFloat(document.getElementById('monthlyRent').value);
var taxYearly = parseFloat(document.getElementById('propertyTax').value) || 0;
var insYearly = parseFloat(document.getElementById('homeInsurance').value) || 0;
var hoa = parseFloat(document.getElementById('hoaFees').value) || 0;
var maint = parseFloat(document.getElementById('maintenance').value) || 0;
var errorDiv = document.getElementById('error-message');
var resultsDiv = document.getElementById('results');
// Validation
if (isNaN(price) || isNaN(downPercent) || isNaN(rate) || isNaN(term) || isNaN(rent)) {
errorDiv.style.display = 'block';
resultsDiv.style.display = 'none';
return;
}
errorDiv.style.display = 'none';
// Calculations
var downPaymentAmount = price * (downPercent / 100);
var loanAmount = price – downPaymentAmount;
var totalUpfront = downPaymentAmount + closing;
// Mortgage Calculation
var monthlyRate = (rate / 100) / 12;
var numPayments = term * 12;
var mortgagePayment = 0;
if (monthlyRate === 0) {
mortgagePayment = loanAmount / numPayments;
} else {
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
}
// Monthly Expenses
var monthlyTax = taxYearly / 12;
var monthlyIns = insYearly / 12;
var totalMonthlyExpenses = mortgagePayment + monthlyTax + monthlyIns + hoa + maint;
// Cash Flow
var monthlyCashFlow = rent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// ROI Metrics
var cashOnCash = (annualCashFlow / totalUpfront) * 100;
// Cap Rate = (Net Operating Income / Purchase Price) * 100
// NOI = Annual Income – Operating Expenses (excluding mortgage)
var annualOperatingExpenses = taxYearly + insYearly + (hoa * 12) + (maint * 12);
var annualNOI = (rent * 12) – annualOperatingExpenses;
var capRate = (annualNOI / price) * 100;
// Formatting currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
// Display Results
document.getElementById('res-upfront').innerHTML = formatter.format(totalUpfront);
document.getElementById('res-mortgage').innerHTML = formatter.format(mortgagePayment);
document.getElementById('res-expenses').innerHTML = formatter.format(totalMonthlyExpenses);
var cfElem = document.getElementById('res-cashflow');
cfElem.innerHTML = formatter.format(monthlyCashFlow);
cfElem.style.color = monthlyCashFlow >= 0 ? '#27ae60' : '#c0392b';
var acfElem = document.getElementById('res-annual-cashflow');
acfElem.innerHTML = formatter.format(annualCashFlow);
acfElem.style.color = annualCashFlow >= 0 ? '#27ae60' : '#c0392b';
var roiElem = document.getElementById('res-roi');
roiElem.innerHTML = cashOnCash.toFixed(2) + '%';
roiElem.style.color = cashOnCash >= 0 ? '#27ae60' : '#c0392b';
document.getElementById('res-caprate').innerHTML = capRate.toFixed(2) + '%';
resultsDiv.style.display = 'block';
}
Understanding Rental Property Cash Flow
Investing in real estate is one of the most reliable ways to build long-term wealth, but not every property is a good investment. The difference between a profitable asset and a money pit often comes down to one metric: Cash Flow. This Rental Property Cash Flow Calculator is designed to help investors make data-driven decisions by analyzing the potential return on investment (ROI) before signing a contract.
What is Cash on Cash Return?
Cash on Cash Return is a rate of return ratio that calculates the cash income earned on the cash invested in a property. Unlike standard ROI, which might account for the total value of the asset, Cash on Cash Return focuses strictly on the liquid cash you put into the deal (Down Payment + Closing Costs) versus the liquid cash you get out (Annual Cash Flow).
The formula used in this calculator is:
Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100%
Why is Positive Cash Flow Critical?
Positive cash flow ensures that the property generates enough income to cover all expenses, including the mortgage, taxes, insurance, and maintenance. This "passive income" provides financial stability and allows investors to:
Reinvest profits into new properties.
Build a reserve fund for vacancies or major repairs.
Weather economic downturns without paying out of pocket.
How to Use This Calculator
To get the most accurate results, ensure you input realistic numbers for your expenses:
Purchase Price & Loan Details: Enter the agreed price and your financing terms. A higher interest rate significantly impacts monthly cash flow.
Rental Income: Research comparable rental properties (comps) in the area to estimate a realistic monthly rent.
Operating Expenses: Don't underestimate costs. Include property taxes, insurance, HOA fees (if applicable), and a buffer for maintenance (typically 5-10% of rent).
A "good" Cash on Cash Return varies by market and strategy, but many investors target 8-12% or higher. Use this tool to compare different properties and financing scenarios to find the deal that meets your financial goals.