.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 2px 10px rgba(0,0,0,0.05);
}
.roi-calc-header {
text-align: center;
margin-bottom: 30px;
color: #2c3e50;
}
.roi-calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 768px) {
.roi-calc-grid {
grid-template-columns: 1fr;
}
}
.input-group {
margin-bottom: 15px;
}
.input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #555;
font-size: 0.95rem;
}
.input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 1rem;
box-sizing: border-box;
}
.input-group input:focus {
border-color: #3498db;
outline: none;
}
.calc-btn-container {
grid-column: 1 / -1;
text-align: center;
margin-top: 10px;
}
.calc-btn {
background-color: #27ae60;
color: white;
border: none;
padding: 12px 30px;
font-size: 1.1rem;
font-weight: bold;
border-radius: 5px;
cursor: pointer;
transition: background-color 0.3s;
}
.calc-btn:hover {
background-color: #219150;
}
.results-section {
grid-column: 1 / -1;
background-color: #f8f9fa;
padding: 20px;
border-radius: 6px;
margin-top: 20px;
border-left: 5px solid #27ae60;
display: none; /* Hidden by default */
}
.result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
font-size: 1rem;
border-bottom: 1px solid #eee;
padding-bottom: 5px;
}
.result-row:last-child {
border-bottom: none;
}
.result-label {
color: #666;
}
.result-value {
font-weight: bold;
color: #2c3e50;
}
.highlight-result {
font-size: 1.3rem;
color: #27ae60;
margin-top: 10px;
padding-top: 10px;
border-top: 2px solid #ddd;
}
.calc-article {
max-width: 800px;
margin: 40px auto 0;
line-height: 1.6;
color: #333;
}
.calc-article h2 {
color: #2c3e50;
border-bottom: 2px solid #eee;
padding-bottom: 10px;
margin-top: 30px;
}
.calc-article h3 {
color: #34495e;
margin-top: 25px;
}
.calc-article p {
margin-bottom: 15px;
}
.calc-article ul {
margin-bottom: 15px;
padding-left: 20px;
}
.calc-article li {
margin-bottom: 8px;
}
function calculateRentalROI() {
// 1. Get Inputs
var price = parseFloat(document.getElementById("purchasePrice").value);
var downPmt = parseFloat(document.getElementById("downPayment").value);
var closing = parseFloat(document.getElementById("closingCosts").value);
var rate = parseFloat(document.getElementById("interestRate").value);
var term = parseFloat(document.getElementById("loanTerm").value);
var rent = parseFloat(document.getElementById("monthlyRent").value);
var expenses = parseFloat(document.getElementById("monthlyExpenses").value);
// Validation
if (isNaN(price) || isNaN(downPmt) || isNaN(rent) || isNaN(expenses)) {
alert("Please enter valid numbers for all fields.");
return;
}
// 2. Calculations
// Total Cash Invested (Denominator)
var totalInvested = downPmt + closing;
// Loan Amount
var loanAmount = price – downPmt;
// Monthly Mortgage Payment Calculation (P&I)
// Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
// i = monthly interest rate, n = total months
var monthlyMortgage = 0;
if (loanAmount > 0 && rate > 0 && term > 0) {
var i = (rate / 100) / 12;
var n = term * 12;
monthlyMortgage = loanAmount * ( (i * Math.pow(1 + i, n)) / (Math.pow(1 + i, n) – 1) );
} else if (loanAmount > 0 && rate === 0) {
monthlyMortgage = loanAmount / (term * 12);
}
// Monthly Cash Flow
var monthlyCashFlow = rent – expenses – monthlyMortgage;
// Annual Cash Flow
var annualCashFlow = monthlyCashFlow * 12;
// Cash on Cash ROI
var roi = 0;
if (totalInvested > 0) {
roi = (annualCashFlow / totalInvested) * 100;
}
// 3. Update DOM
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
document.getElementById("resTotalInvested").innerText = formatter.format(totalInvested);
document.getElementById("resLoanAmount").innerText = formatter.format(loanAmount);
document.getElementById("resMortgage").innerText = formatter.format(monthlyMortgage);
// Handle negative cash flow styling
var cashFlowEl = document.getElementById("resMonthlyCashFlow");
cashFlowEl.innerText = formatter.format(monthlyCashFlow);
cashFlowEl.style.color = monthlyCashFlow >= 0 ? "#2c3e50" : "#e74c3c";
var annualEl = document.getElementById("resAnnualCashFlow");
annualEl.innerText = formatter.format(annualCashFlow);
annualEl.style.color = annualCashFlow >= 0 ? "#2c3e50" : "#e74c3c";
var roiEl = document.getElementById("resROI");
roiEl.innerText = roi.toFixed(2) + "%";
roiEl.style.color = roi >= 0 ? "#27ae60" : "#e74c3c";
// Show results
document.getElementById("resultContainer").style.display = "block";
}
Understanding Cash-on-Cash Return in Real Estate
When investing in rental properties, understanding your Return on Investment (ROI) is crucial for making informed decisions. While there are many metrics to evaluate a property, such as Cap Rate or Internal Rate of Return (IRR), Cash-on-Cash Return is arguably the most practical metric for investors using leverage (mortgages).
What is Cash-on-Cash Return?
Cash-on-Cash Return measures the annual pre-tax cash flow relative to the total amount of cash invested. Unlike Cap Rate, which looks at the property's performance independent of financing, Cash-on-Cash Return specifically accounts for the impact of your mortgage payments.
It answers the simple question: "For every dollar I paid out of pocket to acquire this property, how many dollars am I getting back this year?"
How to Calculate Cash-on-Cash Return
The formula used in the calculator above is straightforward:
Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
- Annual Pre-Tax Cash Flow: This is your gross rental income minus all operating expenses (taxes, insurance, maintenance, vacancy reserves) and minus your annual debt service (mortgage payments).
- Total Cash Invested: This includes your down payment, closing costs, and any immediate repair or rehab costs required to get the property rented.
Why is this Calculator Important?
Novice investors often make the mistake of only looking at the "Cap Rate" or simply subtracting the mortgage from the rent. However, forgetting to account for the actual cash invested (closing costs and repairs) can skew your expectations.
For example, a property might show a positive monthly cash flow, but if you had to invest $100,000 in down payments and repairs to get $200 a month in profit, your Cash-on-Cash return would be a meager 2.4%. You might be better off investing in a high-yield savings account or the stock market. Conversely, a Cash-on-Cash return of 8% to 12% is generally considered a solid benchmark in real estate investing.
Example Scenario
Let's say you buy a property for $250,000.
- You put 20% down: $50,000.
- Closing costs and minor repairs: $5,000.
- Total Cash Invested: $55,000.
The property rents for $2,200/month. After mortgage payments ($1,264) and expenses ($600), you clear $336/month in positive cash flow.
- Annual Cash Flow: $336 × 12 = $4,032.
- Cash-on-Cash Return: $4,032 / $55,000 = 7.33%.
Use the calculator above to adjust the purchase price, interest rate, and expenses to see how they impact your bottom line.