Analyze your investment property performance instantly.
(Taxes, Insurance, Repairs, HOA, Mgmt)
Please fill in all fields with valid numbers.
Cash on Cash ROI
0.00%
Monthly Mortgage Payment (P&I):$0.00
Effective Monthly Income:$0.00
Total Monthly Costs (Mortgage + Exp):$0.00
Net Monthly Cash Flow:$0.00
Annual Cash Flow:$0.00
Understanding Rental Property ROI
Investing in real estate is a powerful way to build wealth, but simply buying a property and renting it out doesn't guarantee a profit. To succeed, you must understand the numbers behind the deal. This Rental Property Cash Flow & ROI Calculator helps investors analyze potential deals by breaking down income, expenses, and financing costs to reveal the true return on investment.
What is Cash on Cash ROI?
Cash on Cash Return on Investment (ROI) is one of the most important metrics for real estate investors. Unlike a standard Cap Rate, which looks at the property's potential regardless of debt, Cash on Cash ROI measures the annual return you make on the actual cash you invested (your down payment plus closing costs and initial repairs).
The formula is:
Cash on Cash ROI = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
A higher percentage indicates a better return on your invested capital. Many investors target a Cash on Cash ROI of 8-12%, though this varies by market and strategy.
Key Metrics Explained
Net Operating Income (NOI): This is your total rental income minus operating expenses (like taxes, insurance, and repairs), but before mortgage payments.
Cash Flow: This is the money left over after all expenses and mortgage payments are made. Positive cash flow puts money in your pocket every month; negative cash flow means the property costs you money to hold.
Vacancy Rate: Properties are rarely occupied 100% of the time. A standard vacancy rate (often 5-8%) accounts for turnover periods between tenants to give a realistic income projection.
How to Use This Calculator
To get an accurate analysis, input your property details carefully:
Purchase Price & Loan: Enter the buying price, your down payment amount, and the mortgage details (interest rate and term).
Projected Rent: Enter the fair market rent for the property.
Expenses: Sum up monthly costs including property taxes, landlord insurance, HOA fees, property management fees (usually 8-10% of rent), and a budget for repairs/CapEx.
Vacancy: Input a percentage to account for empty months (e.g., 5% represents roughly 18 days of vacancy per year).
Use the results to determine if a property meets your investment criteria before making an offer.
function calculateRentalROI() {
// Get Input Values
var price = parseFloat(document.getElementById('purchasePrice').value);
var downPmt = parseFloat(document.getElementById('downPayment').value);
var rate = parseFloat(document.getElementById('interestRate').value);
var years = parseFloat(document.getElementById('loanTerm').value);
var rent = parseFloat(document.getElementById('monthlyRent').value);
var expenses = parseFloat(document.getElementById('monthlyExpenses').value);
var vacancy = parseFloat(document.getElementById('vacancyRate').value);
// Validation
var errorDiv = document.getElementById('errorMessage');
if (isNaN(price) || isNaN(downPmt) || isNaN(rate) || isNaN(years) || isNaN(rent) || isNaN(expenses) || isNaN(vacancy)) {
errorDiv.style.display = 'block';
document.getElementById('resultsSection').style.display = 'none';
return;
} else {
errorDiv.style.display = 'none';
}
// Mortgage Calculation
var loanAmount = price – downPmt;
var monthlyRate = (rate / 100) / 12;
var numberOfPayments = years * 12;
var mortgagePayment = 0;
if (loanAmount > 0 && rate > 0) {
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else if (loanAmount > 0 && rate === 0) {
mortgagePayment = loanAmount / numberOfPayments;
}
// Income Calculations
var vacancyLoss = rent * (vacancy / 100);
var effectiveIncome = rent – vacancyLoss;
// Cash Flow Calculations
var totalMonthlyCosts = mortgagePayment + expenses;
var monthlyCashFlow = effectiveIncome – totalMonthlyCosts;
var annualCashFlow = monthlyCashFlow * 12;
// ROI Calculation
// Assuming Total Investment = Down Payment (simplified, excluding closing costs for this generic calc)
var totalInvestment = downPmt;
var roi = 0;
if (totalInvestment > 0) {
roi = (annualCashFlow / totalInvestment) * 100;
} else if (totalInvestment === 0 && annualCashFlow > 0) {
roi = Infinity; // Infinite return if no money down
}
// Display Results
document.getElementById('resultsSection').style.display = 'block';
// Helper formatting function
function formatCurrency(num) {
return '$' + num.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
}
document.getElementById('roiResult').innerHTML = roi.toFixed(2) + '%';
// Color code ROI
var roiEl = document.getElementById('roiResult');
if (roi >= 12) { roiEl.style.color = '#276749'; } // Green
else if (roi > 0) { roiEl.style.color = '#2b6cb0'; } // Blue
else { roiEl.style.color = '#c53030'; } // Red
document.getElementById('mortgageResult').innerText = formatCurrency(mortgagePayment);
document.getElementById('incomeResult').innerText = formatCurrency(effectiveIncome);
document.getElementById('costsResult').innerText = formatCurrency(totalMonthlyCosts);
document.getElementById('cashFlowResult').innerText = formatCurrency(monthlyCashFlow);
document.getElementById('annualFlowResult').innerText = formatCurrency(annualCashFlow);
// Color code Cash Flow
var cfEl = document.getElementById('cashFlowResult');
if (monthlyCashFlow >= 0) cfEl.style.color = '#276749';
else cfEl.style.color = '#c53030';
}