Analyze cash flow, Cap Rate, and Cash-on-Cash Return.
Repairs, inspections, legal fees.
30 Years
20 Years
15 Years
10 Years
Taxes, Insurance, HOA, Management.
Estimated time property sits empty.
Investment Analysis
Total Cash Invested:$-
Monthly Mortgage Payment:$-
Net Operating Income (NOI) / Mo:$-
Monthly Cash Flow:$-
Cap Rate:-%
Cash on Cash Return:-%
function calculateRentalROI() {
// 1. Get Inputs
var price = parseFloat(document.getElementById('purchasePrice').value) || 0;
var downPmt = parseFloat(document.getElementById('downPayment').value) || 0;
var closing = parseFloat(document.getElementById('closingCosts').value) || 0;
var interest = parseFloat(document.getElementById('interestRate').value) || 0;
var termYears = parseFloat(document.getElementById('loanTerm').value) || 30;
var rent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var expenses = parseFloat(document.getElementById('monthlyExpenses').value) || 0;
var vacancyPercent = parseFloat(document.getElementById('vacancyRate').value) || 0;
// 2. Calculate Mortgage
var loanAmount = price – downPmt;
var monthlyRate = (interest / 100) / 12;
var numPayments = termYears * 12;
var mortgagePayment = 0;
if (loanAmount > 0) {
if (interest === 0) {
mortgagePayment = loanAmount / numPayments;
} else {
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
}
}
// 3. Operating Calculations
var vacancyLoss = rent * (vacancyPercent / 100);
var effectiveGrossIncome = rent – vacancyLoss;
var netOperatingIncome = effectiveGrossIncome – expenses; // Monthly NOI
var monthlyCashFlow = netOperatingIncome – mortgagePayment;
var annualCashFlow = monthlyCashFlow * 12;
var annualNOI = netOperatingIncome * 12;
// 4. Investment Metrics
var totalCashInvested = downPmt + closing;
var capRate = 0;
var cashOnCash = 0;
if (price > 0) {
capRate = (annualNOI / price) * 100;
}
if (totalCashInvested > 0) {
cashOnCash = (annualCashFlow / totalCashInvested) * 100;
}
// 5. Update UI
document.getElementById('resTotalCash').innerHTML = '$' + totalCashInvested.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
document.getElementById('resMortgage').innerHTML = '$' + mortgagePayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resNOI').innerHTML = '$' + netOperatingIncome.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
var cashFlowElem = document.getElementById('resCashFlow');
cashFlowElem.innerHTML = '$' + monthlyCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
cashFlowElem.style.color = monthlyCashFlow >= 0 ? '#27ae60' : '#c0392b';
document.getElementById('resCapRate').innerHTML = capRate.toFixed(2) + '%';
var cocElem = document.getElementById('resCoC');
cocElem.innerHTML = cashOnCash.toFixed(2) + '%';
cocElem.style.color = cashOnCash >= 0 ? '#0073aa' : '#c0392b';
document.getElementById('roi-results-area').style.display = 'block';
}
Rental Property ROI Calculator: Cash on Cash & Cap Rate Analysis
Investing in real estate is one of the most reliable ways to build wealth, but accurate math is required to ensure a property is a true asset rather than a liability. This Rental Property ROI Calculator helps investors evaluate the profitability of a potential purchase by analyzing key performance indicators like Cash on Cash Return, Cap Rate, and Monthly Cash Flow.
How to Calculate Rental Property ROI
To determine if a rental property is a good investment, you cannot simply look at the rent check. You must account for leverage (your mortgage), operating expenses, and the initial capital required to close the deal. This calculator uses two primary formulas:
Net Operating Income (NOI): This is the total income the property generates (Rent minus Vacancy) minus all operating expenses (Taxes, Insurance, Repairs, Management). It does not include mortgage payments.
Cash Flow: This is your actual take-home profit each month. It is calculated as NOI – Mortgage Payment.
Understanding Cash on Cash Return
The most important metric for many investors is the Cash on Cash (CoC) Return. Unlike simple ROI, CoC measures the annual return on the actual cash you invested, not the total loan amount.
Formula: Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100%
For example, if you invest $50,000 (Down Payment + Closing Costs) and the property generates $3,000 in net positive cash flow per year, your Cash on Cash return is 6%. This allows you to compare real estate returns directly against other investments like stocks or bonds.
Cap Rate vs. Cash Flow: What Matters?
While Cash Flow pays the bills, the Capitalization Rate (Cap Rate) measures the raw efficiency of the property. Calculated as (Annual NOI / Purchase Price), it tells you what your return would be if you bought the property in all cash. A higher Cap Rate generally indicates a better deal, assuming risks are equal, while Cash Flow ensures you can hold the property long-term without injecting extra capital.
How to Use This Calculator
Input your purchase price, financing details, and estimated operating expenses above. Be sure to estimate a Vacancy Rate (typically 5-8%) to account for turnover periods where you collect zero rent. The calculator will instantly provide a snapshot of the property's financial health, helping you make data-driven investment decisions.