Please check your inputs. Ensure all values are non-negative numbers.
Investment Performance
Monthly Cash Flow$0.00
Cash on Cash Return0.00%
Cap Rate0.00%
Net Operating Income (Monthly)$0.00
Total Monthly Expenses$0.00
Monthly Mortgage Payment$0.00
Total Cash Needed to Close$0.00
function calculateRentalROI() {
// Retrieve inputs
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value);
var closingCosts = parseFloat(document.getElementById('closingCosts').value);
var downPaymentPercent = parseFloat(document.getElementById('downPaymentPercent').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var loanTerm = parseFloat(document.getElementById('loanTerm').value);
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value);
var vacancyRate = parseFloat(document.getElementById('vacancyRate').value);
var propertyTax = parseFloat(document.getElementById('propertyTax').value);
var annualInsurance = parseFloat(document.getElementById('annualInsurance').value);
var maintenancePercent = parseFloat(document.getElementById('maintenance').value);
var hoaFees = parseFloat(document.getElementById('hoaFees').value);
var managementFeePercent = parseFloat(document.getElementById('managementFee').value);
// Validation
if (isNaN(purchasePrice) || isNaN(monthlyRent)) {
document.getElementById('errorMsg').style.display = 'block';
document.getElementById('results').style.display = 'none';
return;
}
document.getElementById('errorMsg').style.display = 'none';
// 1. Loan Calculations
var downPaymentAmount = purchasePrice * (downPaymentPercent / 100);
var loanAmount = purchasePrice – downPaymentAmount;
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
var monthlyMortgage = 0;
if (interestRate > 0) {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else {
monthlyMortgage = loanAmount / numberOfPayments;
}
// 2. Income Adjustments
var vacancyCost = monthlyRent * (vacancyRate / 100);
var effectiveGrossIncome = monthlyRent – vacancyCost;
// 3. Monthly Expenses
var monthlyTax = propertyTax / 12;
var monthlyInsurance = annualInsurance / 12;
var monthlyMaintenance = (purchasePrice * (maintenancePercent / 100)) / 12; // Maintenance usually based on price or rent. Using price here as per input structure, or can use rent. Let's stick to % of Price as structural maintenance.
// Actually, industry standard often uses % of rent for maintenance. Let's adjust logic: standard input was "Annual Maintenance %", implies % of value usually. Let's assume % of purchase price.
// Re-reading prompt input: "Maintenance Cost %". Common metric is 1% of value / year.
var monthlyManagement = monthlyRent * (managementFeePercent / 100);
var operatingExpenses = monthlyTax + monthlyInsurance + monthlyMaintenance + hoaFees + monthlyManagement + vacancyCost; // Vacancy is an expense/loss in NOI calc typically handled as contra-revenue, but for Cash Flow it's money not received.
// For strict NOI: NOI = Gross Potential Income – Vacancy – Operating Expenses.
// Let's calculate Operating Expenses (Excluding Debt Service)
var opExNoVacancy = monthlyTax + monthlyInsurance + monthlyMaintenance + hoaFees + monthlyManagement;
var monthlyNOI = effectiveGrossIncome – opExNoVacancy;
var totalMonthlyExpenses = opExNoVacancy + monthlyMortgage;
// 4. Cash Flow
var monthlyCashFlow = monthlyNOI – monthlyMortgage;
var annualCashFlow = monthlyCashFlow * 12;
// 5. Returns
var totalCashInvested = downPaymentAmount + closingCosts;
var cocReturn = (totalCashInvested > 0) ? (annualCashFlow / totalCashInvested) * 100 : 0;
var capRate = (purchasePrice > 0) ? ((monthlyNOI * 12) / purchasePrice) * 100 : 0;
// Display Results
document.getElementById('monthlyCashFlow').innerHTML = formatCurrency(monthlyCashFlow);
document.getElementById('cocReturn').innerHTML = cocReturn.toFixed(2) + '%';
document.getElementById('capRate').innerHTML = capRate.toFixed(2) + '%';
document.getElementById('monthlyNOI').innerHTML = formatCurrency(monthlyNOI);
document.getElementById('totalMonthlyExpenses').innerHTML = formatCurrency(totalMonthlyExpenses);
document.getElementById('monthlyMortgage').innerHTML = formatCurrency(monthlyMortgage);
document.getElementById('totalCashInvested').innerHTML = formatCurrency(totalCashInvested);
// Styling based on result
if (monthlyCashFlow >= 0) {
document.getElementById('monthlyCashFlow').style.color = '#2c7a7b';
} else {
document.getElementById('monthlyCashFlow').style.color = '#e53e3e';
}
document.getElementById('results').style.display = 'block';
}
function formatCurrency(num) {
return '$' + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
Understanding Your Rental Property ROI
Investing in real estate is one of the most reliable ways to build wealth, but accurate math is essential. This Rental Property Cash Flow & ROI Calculator helps investors analyze deals by breaking down income, expenses, and returns. Whether you are analyzing a long-term rental, a BRRRR strategy, or a turnkey property, understanding the numbers is the first step to profitability.
What is Cash on Cash Return?
Cash on Cash Return (CoC) is widely considered the most important metric for rental property investors. Unlike simple ROI, CoC measures the annual return on the actual cash you invested, rather than the total loan amount.
The formula is: Annual Pre-Tax Cash Flow / Total Cash Invested.
For example, if you invest $50,000 (down payment + closing costs) and the property generates $5,000 in net positive cash flow per year, your Cash on Cash return is 10%. This metric helps you compare real estate returns directly against other investment vehicles like stocks or bonds.
Cap Rate vs. Cash Flow
While Cash Flow pays the bills, the Cap Rate (Capitalization Rate) measures the raw profitability of the asset itself, independent of financing. It is calculated by dividing the Net Operating Income (NOI) by the Property Value. A higher Cap Rate generally indicates a higher potential return, but often comes with higher risk (e.g., lower quality neighborhoods).
Cash Flow: The money left in your pocket after all expenses and mortgage payments.
NOI: Income minus operating expenses (excluding mortgage).
Cap Rate: A benchmark to compare properties as if you paid all cash.
How to Estimate Expenses
New investors often underestimate expenses. When using this calculator, ensure you account for:
Vacancy: Even in hot markets, assume 5-8% vacancy (about one month empty per year or turnover costs).
Maintenance: Budget 1% of the property value annually for repairs, or 10-15% of the rent.
Management Fees: If you hire a property manager, they typically charge 8-10% of the monthly rent.
FAQ: Rental Property Analysis
What is a good Cash on Cash return for a rental property?
Most investors target a Cash on Cash return of 8% to 12%. However, in high-appreciation markets, investors might accept lower cash flow (4-6%) in exchange for long-term equity growth. In pure cash-flow markets, investors may seek 15% or higher.
Does this calculator include principal paydown?
This calculator focuses on Cash Flow and Cash on Cash Return. While mortgage principal paydown increases your net worth (ROI), it does not put cash in your pocket monthly, so it is excluded from the Cash on Cash calculation but is part of the overall Total ROI.
How do I calculate Net Operating Income (NOI)?
NOI is calculated by taking the Gross Annual Income and subtracting all operating expenses (Vacancy, Taxes, Insurance, Management, Maintenance, Utilities). It explicitly excludes mortgage payments (Debt Service).