.calc-header { text-align: center; margin-bottom: 30px; }
.calc-header h2 { color: #2c3e50; margin: 0; font-size: 28px; }
.calc-header p { color: #7f8c8d; margin-top: 5px; }
.calc-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 20px; }
.input-group { margin-bottom: 15px; }
.input-group label { display: block; margin-bottom: 5px; color: #34495e; font-weight: 600; font-size: 14px; }
.input-group input { width: 100%; padding: 10px; border: 1px solid #bdc3c7; border-radius: 4px; font-size: 16px; box-sizing: border-box; }
.input-group input:focus { border-color: #3498db; outline: none; }
.calc-btn-container { grid-column: 1 / -1; margin-top: 10px; }
.calc-btn { width: 100%; background: #27ae60; color: white; border: none; padding: 15px; font-size: 18px; font-weight: bold; border-radius: 4px; cursor: pointer; transition: background 0.2s; }
.calc-btn:hover { background: #219150; }
.results-section { grid-column: 1 / -1; margin-top: 30px; background: #f8f9fa; padding: 20px; border-radius: 6px; display: none; }
.results-grid { display: grid; grid-template-columns: repeat(3, 1fr); gap: 15px; }
.result-card { background: white; padding: 15px; border-radius: 4px; border-left: 4px solid #3498db; box-shadow: 0 2px 4px rgba(0,0,0,0.05); text-align: center; }
.result-card.highlight { border-left-color: #27ae60; }
.result-card h4 { margin: 0 0 10px; color: #7f8c8d; font-size: 13px; text-transform: uppercase; letter-spacing: 1px; }
.result-card .value { font-size: 24px; font-weight: bold; color: #2c3e50; }
.result-card .sub-value { font-size: 12px; color: #95a5a6; margin-top: 5px; }
.article-content { margin-top: 50px; line-height: 1.6; color: #444; }
.article-content h3 { color: #2c3e50; margin-top: 25px; border-bottom: 2px solid #ecf0f1; padding-bottom: 10px; }
.article-content ul { padding-left: 20px; }
.article-content li { margin-bottom: 8px; }
@media (max-width: 600px) {
.calc-grid { grid-template-columns: 1fr; }
.results-grid { grid-template-columns: 1fr; }
}
function calculateRentalROI() {
// 1. Get Inputs
var price = parseFloat(document.getElementById('purchasePrice').value);
var downPayment = parseFloat(document.getElementById('downPayment').value);
var closingCosts = parseFloat(document.getElementById('closingCosts').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var loanTerm = parseFloat(document.getElementById('loanTerm').value);
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value);
var annualTax = parseFloat(document.getElementById('annualTax').value);
var annualInsurance = parseFloat(document.getElementById('annualInsurance').value);
var vacancyRate = parseFloat(document.getElementById('vacancyRate').value);
var maintRate = parseFloat(document.getElementById('maintenanceRate').value);
var monthlyHOA = parseFloat(document.getElementById('monthlyHOA').value);
// Validation
if (isNaN(price) || isNaN(monthlyRent) || isNaN(downPayment)) {
alert("Please enter valid numbers for Price, Down Payment, and Rent.");
return;
}
// 2. Calculate Mortgage (Principal & Interest)
var loanAmount = price – downPayment;
var monthlyMortgage = 0;
if (loanAmount > 0 && interestRate > 0) {
var monthlyRate = (interestRate / 100) / 12;
var totalPayments = loanTerm * 12;
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, totalPayments)) / (Math.pow(1 + monthlyRate, totalPayments) – 1);
} else if (loanAmount > 0 && interestRate === 0) {
monthlyMortgage = loanAmount / (loanTerm * 12);
}
// 3. Calculate Monthly Expenses (Operating)
var monthlyTax = annualTax / 12;
var monthlyIns = annualInsurance / 12;
var monthlyVacancy = monthlyRent * (vacancyRate / 100);
var monthlyMaint = monthlyRent * (maintRate / 100);
var totalOperatingExpenses = monthlyTax + monthlyIns + monthlyVacancy + monthlyMaint + monthlyHOA;
// 4. Calculate NOI (Net Operating Income)
// NOI = Income – Operating Expenses (Excluding Mortgage)
var monthlyNOI = monthlyRent – totalOperatingExpenses;
var annualNOI = monthlyNOI * 12;
// 5. Calculate Cash Flow
var monthlyCashFlow = monthlyNOI – monthlyMortgage;
var annualCashFlow = monthlyCashFlow * 12;
// 6. Calculate Returns
var totalInitialInvestment = downPayment + closingCosts;
// Cap Rate = (Annual NOI / Price) * 100
var capRate = (annualNOI / price) * 100;
// Cash on Cash = (Annual Cash Flow / Total Cash Invested) * 100
var cashOnCash = 0;
if (totalInitialInvestment > 0) {
cashOnCash = (annualCashFlow / totalInitialInvestment) * 100;
}
// 7. Update UI
document.getElementById('resCashFlow').innerHTML = formatMoney(monthlyCashFlow);
document.getElementById('resCashFlow').style.color = monthlyCashFlow >= 0 ? '#27ae60' : '#c0392b';
document.getElementById('resCoC').innerHTML = cashOnCash.toFixed(2) + '%';
document.getElementById('resCoC').style.color = cashOnCash >= 0 ? '#2c3e50' : '#c0392b';
document.getElementById('resCapRate').innerHTML = capRate.toFixed(2) + '%';
document.getElementById('resNOI').innerHTML = formatMoney(monthlyNOI);
document.getElementById('resInvestment').innerHTML = formatMoney(totalInitialInvestment);
document.getElementById('resMortgage').innerHTML = formatMoney(monthlyMortgage);
// Show results
document.getElementById('calcResults').style.display = 'block';
}
function formatMoney(number) {
return '$' + number.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 });
}
Rental Property ROI Calculator
Calculate Cash Flow, Cap Rate, and Cash-on-Cash Return
Investment Analysis
Monthly Cash Flow
$0.00
Net profit after all expenses
Cash-on-Cash ROI
0.00%
Annual return on cash invested
Cap Rate
0.00%
Unleveraged return
NOI (Monthly)
$0.00
Net Operating Income
Total Initial Investment
$0.00
Down payment + Closing costs
Monthly Mortgage
$0.00
Principal & Interest
Understanding Rental Property Return on Investment
Investing in real estate is one of the most reliable ways to build wealth, but simply buying a property doesn't guarantee a profit. To succeed, investors must analyze the numbers rigorously. This Rental Property ROI Calculator helps you evaluate the profitability of a potential investment by breaking down cash flow, Cap Rate, and Cash-on-Cash return.
1. Cash Flow: The Lifeblood of Investing
Cash Flow is the net amount of cash moving in or out of the investment each month. It is calculated by taking your total income (primarily rent) and subtracting all expenses, including the mortgage payment, taxes, insurance, HOA fees, vacancy reserves, and maintenance costs. Positive cash flow means the property is putting money in your pocket every month, while negative cash flow means you are paying to hold the property.
2. Cash-on-Cash Return (CoC)
Perhaps the most critical metric for active investors, Cash-on-Cash Return measures the annual pre-tax cash flow divided by the total cash invested. Unlike Cap Rate, this takes debt service (mortgage) into account.
- Formula: (Annual Cash Flow / Total Cash Invested) × 100
- Why it matters: It tells you exactly how hard your actual dollars are working. If you put $50,000 down and get $5,000 a year in cash flow, your CoC is 10%. This allows you to compare real estate against other vehicles like stocks or bonds.
3. Capitalization Rate (Cap Rate)
The Cap Rate measures the property's natural rate of return assuming you bought it with all cash. It is calculated by dividing the Net Operating Income (NOI) by the purchase price.
- Formula: (Net Operating Income / Purchase Price) × 100
- Usage: Cap Rate is excellent for comparing the value of different properties regardless of how they are financed. It helps assess the risk and potential of the local market.
What Expenses Should You Estimate?
Many new investors fail because they underestimate expenses. Beyond the obvious mortgage and tax payments, ensure you account for:
- Vacancy Rate: Properties won't be rented 365 days a year. A standard safe estimate is 5-8% (about 2-4 weeks of vacancy per year).
- Maintenance & Repairs: Roofs leak and toilets break. Setting aside 5-10% of monthly rent ensures you have funds ready when repairs are needed.
- Capital Expenditures (CapEx): Major replacements like HVAC or flooring.