.calculator-wrapper {
max-width: 800px;
margin: 0 auto;
font-family: 'Segoe UI', Roboto, Helvetica, Arial, sans-serif;
line-height: 1.6;
color: #333;
}
.calc-container {
background-color: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 30px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
margin-bottom: 40px;
}
.calc-header {
text-align: center;
margin-bottom: 25px;
}
.calc-header h2 {
margin: 0;
color: #2c3e50;
font-size: 24px;
}
.calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.calc-grid {
grid-template-columns: 1fr;
}
}
.input-group {
margin-bottom: 15px;
}
.input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
font-size: 14px;
color: #555;
}
.input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box; /* Ensures padding doesn't affect width */
}
.input-group input:focus {
border-color: #3498db;
outline: none;
box-shadow: 0 0 5px rgba(52, 152, 219, 0.3);
}
.section-title {
grid-column: 1 / -1;
font-size: 18px;
border-bottom: 2px solid #eee;
padding-bottom: 10px;
margin-top: 10px;
margin-bottom: 10px;
color: #2980b9;
}
.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;
transition: background-color 0.3s;
text-align: center;
margin-top: 10px;
}
.calc-btn:hover {
background-color: #219150;
}
.results-section {
grid-column: 1 / -1;
background-color: #fff;
border: 1px solid #ddd;
border-radius: 4px;
padding: 20px;
margin-top: 20px;
display: none; /* Hidden by default */
}
.result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
padding-bottom: 10px;
border-bottom: 1px solid #eee;
}
.result-row:last-child {
border-bottom: none;
margin-bottom: 0;
padding-bottom: 0;
}
.result-label {
font-weight: 600;
color: #555;
}
.result-value {
font-weight: bold;
color: #2c3e50;
}
.highlight-result {
color: #27ae60;
font-size: 1.1em;
}
.negative {
color: #c0392b;
}
.article-content h2 {
color: #2c3e50;
margin-top: 30px;
}
.article-content h3 {
color: #34495e;
margin-top: 25px;
}
.article-content ul {
margin-bottom: 20px;
}
.article-content li {
margin-bottom: 8px;
}
function calculateRentalROI() {
// Get Input Values
var price = parseFloat(document.getElementById('calc_price').value) || 0;
var closing = parseFloat(document.getElementById('calc_closing').value) || 0;
var downPct = parseFloat(document.getElementById('calc_down_pct').value) || 0;
var rate = parseFloat(document.getElementById('calc_rate').value) || 0;
var term = parseFloat(document.getElementById('calc_term').value) || 0;
var rent = parseFloat(document.getElementById('calc_rent').value) || 0;
var vacancyPct = parseFloat(document.getElementById('calc_vacancy').value) || 0;
var tax = parseFloat(document.getElementById('calc_tax').value) || 0;
var insurance = parseFloat(document.getElementById('calc_insurance').value) || 0;
var hoa = parseFloat(document.getElementById('calc_hoa').value) || 0;
var maintenancePct = parseFloat(document.getElementById('calc_maintenance').value) || 0;
var mgmtPct = parseFloat(document.getElementById('calc_mgmt').value) || 0;
// Calculations – Loan
var downAmount = price * (downPct / 100);
var loanAmount = price – downAmount;
var monthlyRate = rate / 100 / 12;
var numPayments = term * 12;
var monthlyMortgage = 0;
if (rate === 0) {
monthlyMortgage = loanAmount / numPayments;
} else {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
}
if (isNaN(monthlyMortgage)) monthlyMortgage = 0;
// Calculations – Income
var effectiveRent = rent * (1 – (vacancyPct / 100));
// Calculations – Expenses
var monthlyTax = tax / 12;
var monthlyInsurance = insurance / 12;
var monthlyMaintenance = rent * (maintenancePct / 100);
var monthlyMgmt = rent * (mgmtPct / 100);
var totalOperatingExpenses = monthlyTax + monthlyInsurance + hoa + monthlyMaintenance + monthlyMgmt;
var totalMonthlyExpenses = totalOperatingExpenses + monthlyMortgage;
// Calculations – Metrics
var monthlyNOI = effectiveRent – totalOperatingExpenses;
var monthlyCashFlow = effectiveRent – totalMonthlyExpenses;
var annualNOI = monthlyNOI * 12;
var annualCashFlow = monthlyCashFlow * 12;
var totalCashInvested = downAmount + closing;
var capRate = (price > 0) ? (annualNOI / price) * 100 : 0;
var cocReturn = (totalCashInvested > 0) ? (annualCashFlow / totalCashInvested) * 100 : 0;
// Display Results
document.getElementById('results-area').style.display = 'block';
function formatCurrency(num) {
return '$' + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
document.getElementById('res_mortgage').innerText = formatCurrency(monthlyMortgage);
document.getElementById('res_expenses').innerText = formatCurrency(totalMonthlyExpenses);
document.getElementById('res_noi').innerText = formatCurrency(monthlyNOI);
var cashFlowEl = document.getElementById('res_cashflow');
cashFlowEl.innerText = formatCurrency(monthlyCashFlow);
cashFlowEl.className = 'result-value highlight-result' + (monthlyCashFlow < 0 ? ' negative' : '');
document.getElementById('res_invested').innerText = formatCurrency(totalCashInvested);
document.getElementById('res_cap').innerText = capRate.toFixed(2) + '%';
var cocEl = document.getElementById('res_coc');
cocEl.innerText = cocReturn.toFixed(2) + '%';
cocEl.className = 'result-value highlight-result' + (cocReturn < 0 ? ' negative' : '');
}
How to Analyze a Rental Property Investment
Real estate investing can be one of the most reliable ways to build wealth, but only if you buy the right deals. The difference between a profitable asset and a money pit often comes down to the numbers. This Rental Property Calculator helps you look past the asking price to understand the true profitability of a potential investment using key industry metrics like Cash on Cash Return and Cap Rate.
What is Cash on Cash Return?
Cash on Cash (CoC) Return is arguably the most important metric for rental property investors. It measures the annual return you make on the actual cash you invested, rather than the total purchase price of the property.
Formula: (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100
For example, if you buy a $200,000 house but only put $40,000 down (plus $5,000 in closing costs), your total cash invested is $45,000. If that property generates $3,000 in net positive cash flow per year, your Cash on Cash return is ($3,000 / $45,000) = 6.6%. This allows you to compare real estate returns directly against other investments like stocks or bonds.
Understanding Net Operating Income (NOI)
Net Operating Income is the total income the property generates minus all necessary operating expenses. Important: NOI does not include your mortgage payments. It represents the profitability of the property itself, regardless of how it is financed.
Operating expenses include:
- Property Taxes
- Insurance Premiums
- HOA Fees
- Maintenance & Repairs (estimate 5-10% of rent)
- Property Management Fees (usually 8-10% of rent)
- Vacancy Reserves (usually 5-8%)
Cap Rate vs. Cash Flow
Cap Rate (Capitalization Rate) is calculated by dividing the NOI by the property's purchase price. It is useful for comparing the value of different properties in a specific market quickly, assuming an all-cash purchase.
Cash Flow, on the other hand, is what ends up in your bank account every month after everything is paid, including the mortgage. Most residential investors prioritize Cash Flow to ensure the property pays for itself and provides passive income.
The 1% Rule
A common rule of thumb for screening properties is the 1% Rule. It states that the monthly rent should be at least 1% of the purchase price. For example, a $150,000 home should rent for at least $1,500/month. While it's getting harder to find 1% deals in hot markets, this calculator allows you to input exact numbers to see if a deal makes sense even if it doesn't meet the 1% threshold.
Why You Should Account for Vacancy and Maintenance
New investors often make the mistake of assuming 100% occupancy and zero repairs. This is unrealistic. A tenant turnover can leave a unit empty for a month (8.3% vacancy for that year), and water heaters break unexpectedly. By inputting values for Vacancy (e.g., 5%) and Maintenance (e.g., 5-10%), this calculator sets aside a portion of your monthly income to cover these inevitable costs, giving you a much more conservative and safe estimate of your returns.