Rental Property ROI Calculator
.rp-calculator-wrapper {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 20px;
border: 1px solid #e0e0e0;
border-radius: 8px;
background-color: #f9f9f9;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.rp-calc-header {
text-align: center;
margin-bottom: 25px;
}
.rp-calc-header h2 {
color: #2c3e50;
margin-bottom: 10px;
}
.rp-input-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
.rp-input-group {
display: flex;
flex-direction: column;
}
.rp-input-group label {
font-weight: 600;
margin-bottom: 5px;
color: #333;
font-size: 0.9em;
}
.rp-input-group input {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
}
.rp-calc-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;
margin-top: 10px;
transition: background-color 0.3s;
}
.rp-calc-btn:hover {
background-color: #219150;
}
.rp-results {
margin-top: 30px;
background-color: #fff;
padding: 20px;
border-radius: 6px;
border: 1px solid #eee;
display: none; /* Hidden until calculated */
}
.rp-result-row {
display: flex;
justify-content: space-between;
padding: 10px 0;
border-bottom: 1px solid #eee;
}
.rp-result-row:last-child {
border-bottom: none;
}
.rp-result-label {
color: #555;
}
.rp-result-value {
font-weight: bold;
color: #2c3e50;
}
.rp-highlight {
font-size: 1.2em;
color: #27ae60;
}
.rp-content-section {
max-width: 800px;
margin: 40px auto;
line-height: 1.6;
color: #333;
font-family: inherit;
}
.rp-content-section h2 {
color: #2c3e50;
margin-top: 30px;
border-bottom: 2px solid #27ae60;
padding-bottom: 10px;
display: inline-block;
}
.rp-content-section ul {
margin-left: 20px;
}
.rp-content-section li {
margin-bottom: 10px;
}
@media (max-width: 600px) {
.rp-input-grid {
grid-template-columns: 1fr;
}
}
Investment Analysis
Monthly Mortgage Payment (P&I):
$0.00
Total Monthly Cash Flow:
$0.00
Net Operating Income (NOI) / Year:
$0.00
Cap Rate:
0.00%
Cash on Cash Return:
0.00%
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 ensure profitability, investors must analyze the numbers before signing on the dotted line. This Rental Property ROI Calculator helps you determine the viability of a potential investment by breaking down cash flow, cap rate, and cash-on-cash return.
Key Metrics Explained
When analyzing a rental property, there are three main metrics you should focus on:
- Cash Flow: This is the net profit you pocket every month after all expenses (mortgage, taxes, insurance, repairs) are paid. Positive cash flow is essential for a sustainable investment.
- Cap Rate (Capitalization Rate): This metric measures the property's natural rate of return assuming it was bought with cash. It is calculated by dividing the Net Operating Income (NOI) by the purchase price. It helps compare properties regardless of financing.
- Cash on Cash Return (CoC): This is perhaps the most important metric for leveraged investors. It calculates the annual return on the actual cash you invested (down payment + closing costs), giving you a true picture of your money's performance compared to the stock market or other investments.
How to Calculate Cash on Cash Return
The formula for Cash on Cash return is straightforward:
CoC Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100
For example, if you invest $55,000 total cash (down payment + closing costs) and the property generates $3,300 in positive cash flow per year, your Cash on Cash return is 6%. A good CoC return varies by market, but many investors target 8-12%.
Estimating Expenses
One common mistake beginners make is underestimating operating expenses. Beyond the mortgage, ensure you account for:
- Vacancy: Properties won't be rented 365 days a year. A standard safe estimate is 5-8%.
- Repairs & Maintenance: Toilets break and roofs leak. Set aside 5-10% of rent for future repairs.
- Property Management: If you don't plan to be a landlord yourself, expect to pay 8-10% of monthly rent to a manager.
Use the calculator above to adjust these variables and stress-test your investment to see how it performs under different scenarios.
function calculateRentalROI() {
// 1. Get Input Values
var price = parseFloat(document.getElementById('rpPurchasePrice').value);
var downPayment = parseFloat(document.getElementById('rpDownPayment').value);
var closingCosts = parseFloat(document.getElementById('rpClosingCosts').value);
var interestRate = parseFloat(document.getElementById('rpInterestRate').value);
var loanTermYears = parseFloat(document.getElementById('rpLoanTerm').value);
var monthlyRent = parseFloat(document.getElementById('rpMonthlyRent').value);
var monthlyExpenses = parseFloat(document.getElementById('rpMonthlyExpenses').value);
var vacancyRate = parseFloat(document.getElementById('rpVacancyRate').value);
// 2. Validation
if (isNaN(price) || isNaN(downPayment) || isNaN(interestRate) || isNaN(loanTermYears) || isNaN(monthlyRent)) {
alert("Please enter valid numbers in all fields.");
return;
}
// 3. Logic & Calculations
// Loan Calculation
var loanAmount = price – downPayment;
var monthlyRate = (interestRate / 100) / 12;
var totalPayments = loanTermYears * 12;
// Mortgage Payment (Principal + Interest)
var monthlyMortgage = 0;
if (interestRate === 0) {
monthlyMortgage = loanAmount / totalPayments;
} else {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, totalPayments)) / (Math.pow(1 + monthlyRate, totalPayments) – 1);
}
// Income Logic
var vacancyLoss = monthlyRent * (vacancyRate / 100);
var effectiveGrossIncome = monthlyRent – vacancyLoss;
// Net Operating Income (NOI) = Income – Operating Expenses (Excluding Mortgage)
// Annualized
var annualNOI = (effectiveGrossIncome – monthlyExpenses) * 12;
var monthlyNOI = effectiveGrossIncome – monthlyExpenses;
// Cash Flow = NOI – Mortgage Payment
var monthlyCashFlow = monthlyNOI – monthlyMortgage;
var annualCashFlow = monthlyCashFlow * 12;
// Total Cash Invested
var totalCashInvested = downPayment + closingCosts;
// Returns
var capRate = (annualNOI / price) * 100;
var cashOnCash = 0;
if (totalCashInvested > 0) {
cashOnCash = (annualCashFlow / totalCashInvested) * 100;
}
// 4. Update UI
document.getElementById('resMortgage').innerText = "$" + monthlyMortgage.toFixed(2);
var cashFlowEl = document.getElementById('resCashFlow');
cashFlowEl.innerText = "$" + monthlyCashFlow.toFixed(2);
// Color coding for cashflow
if (monthlyCashFlow >= 0) {
cashFlowEl.style.color = "#27ae60"; // Green
} else {
cashFlowEl.style.color = "#c0392b"; // Red
}
document.getElementById('resNOI').innerText = "$" + annualNOI.toFixed(2);
document.getElementById('resCapRate').innerText = capRate.toFixed(2) + "%";
var cocEl = document.getElementById('resCoC');
cocEl.innerText = cashOnCash.toFixed(2) + "%";
if (cashOnCash >= 0) {
cocEl.style.color = "#27ae60";
} else {
cocEl.style.color = "#c0392b";
}
// Show Results
document.getElementById('rpResults').style.display = "block";
}