/* Scope styles to avoid conflicts */
.rpc-calculator-container {
font-family: 'Segoe UI', Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
padding: 20px;
background: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
color: #333;
}
.rpc-calculator-container h2 {
text-align: center;
color: #2c3e50;
margin-bottom: 25px;
}
.rpc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
.rpc-input-group {
margin-bottom: 15px;
}
.rpc-input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
font-size: 0.9rem;
}
.rpc-input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 1rem;
box-sizing: border-box;
}
.rpc-input-group input:focus {
border-color: #3498db;
outline: none;
}
.rpc-btn-container {
grid-column: 1 / -1;
text-align: center;
margin-top: 10px;
}
.rpc-calculate-btn {
background-color: #27ae60;
color: white;
border: none;
padding: 12px 30px;
font-size: 1.1rem;
border-radius: 5px;
cursor: pointer;
transition: background 0.3s;
}
.rpc-calculate-btn:hover {
background-color: #219150;
}
.rpc-results {
grid-column: 1 / -1;
background: white;
padding: 20px;
border-radius: 5px;
margin-top: 20px;
border-left: 5px solid #3498db;
display: none; /* Hidden by default */
}
.rpc-result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
padding-bottom: 10px;
border-bottom: 1px solid #eee;
}
.rpc-result-row.highlight {
font-weight: bold;
color: #2c3e50;
font-size: 1.2rem;
border-bottom: none;
margin-top: 10px;
}
.rpc-result-value {
font-weight: bold;
}
.rpc-positive { color: #27ae60; }
.rpc-negative { color: #c0392b; }
.rpc-article {
max-width: 800px;
margin: 40px auto;
font-family: 'Segoe UI', Roboto, sans-serif;
line-height: 1.6;
color: #444;
}
.rpc-article h2 {
color: #2c3e50;
margin-top: 30px;
}
.rpc-article h3 {
color: #34495e;
}
.rpc-article ul {
margin-bottom: 20px;
}
.rpc-article li {
margin-bottom: 10px;
}
@media (max-width: 600px) {
.rpc-grid {
grid-template-columns: 1fr;
}
}
Understanding Rental Property ROI
Investing in real estate is a powerful way to build wealth, but knowing your numbers is critical before signing any contract. This Rental Property Cash Flow Calculator helps you determine if a specific property will generate a profit or become a liability.
How to Calculate Cash Flow
Cash flow is the net income from a real estate investment after mortgage payments and operating expenses have been deducted. The formula is simple:
Cash Flow = Gross Rental Income – (Mortgage Payment + Operating Expenses)
Operating expenses typically include property taxes, homeowner's insurance, HOA fees, maintenance/repairs, vacancy reserves, and property management fees. Ignoring these costs is the most common mistake new investors make.
What is Cash on Cash ROI?
While cash flow tells you how much money enters your pocket monthly, Cash on Cash Return on Investment (ROI) tells you how hard your money is working. It measures the annual pre-tax cash flow relative to the total cash invested.
For example, if you invest $50,000 (down payment + closing costs) to buy a property that generates $3,000 in annual positive cash flow, your Cash on Cash ROI is:
- ($3,000 / $50,000) × 100 = 6%
A "good" ROI depends on your goals, but many investors look for returns between 8% and 12% to justify the lack of liquidity in real estate compared to the stock market.
Example Scenario
Imagine purchasing a single-family home for $200,000 with 20% down ($40,000). You get a 30-year loan at 6.5% interest.
- Mortgage Payment: Approximately $1,011/month.
- Expenses: Taxes, insurance, and repairs total $500/month.
- Rental Income: You rent it for $1,800/month.
Your total outflow is $1,511. Your income is $1,800. Your Monthly Cash Flow is positive $289. Over a year, that's $3,468 in profit on a roughly $45,000 total cash investment (including closing costs), yielding a 7.7% Cash on Cash return.
function calculateRentalROI() {
// 1. Get Inputs
var price = parseFloat(document.getElementById('rpc-price').value);
var downPercent = parseFloat(document.getElementById('rpc-down').value);
var rate = parseFloat(document.getElementById('rpc-rate').value);
var termYears = parseFloat(document.getElementById('rpc-term').value);
var rent = parseFloat(document.getElementById('rpc-rent').value);
var opex = parseFloat(document.getElementById('rpc-opex').value);
var closingCosts = parseFloat(document.getElementById('rpc-closing').value);
// 2. Validate Inputs
if (isNaN(price) || isNaN(rent) || isNaN(opex) || price 0 && loanAmount > 0) {
// Mortgage Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, totalPayments)) / (Math.pow(1 + monthlyRate, totalPayments) – 1);
} else if (rate === 0 && loanAmount > 0) {
monthlyMortgage = loanAmount / totalPayments;
}
// Cash Flow Calculations
var totalMonthlyExpenses = monthlyMortgage + opex;
var monthlyCashFlow = rent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// ROI Calculations
var totalCashInvested = downPayment + closingCosts;
var cashOnCashROI = 0;
if (totalCashInvested > 0) {
cashOnCashROI = (annualCashFlow / totalCashInvested) * 100;
}
// Cap Rate Calculation (Net Operating Income / Price)
// NOI = (Rent – Operating Expenses) * 12. IMPORTANT: NOI does NOT include mortgage.
var annualNOI = (rent – opex) * 12;
var capRate = (annualNOI / price) * 100;
// 4. Update UI
var resultArea = document.getElementById('rpc-result-area');
resultArea.style.display = 'block';
// Format Currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
document.getElementById('rpc-res-mortgage').innerText = formatter.format(monthlyMortgage);
document.getElementById('rpc-res-total-exp').innerText = formatter.format(totalMonthlyExpenses);
var cashFlowEl = document.getElementById('rpc-res-cashflow');
cashFlowEl.innerText = formatter.format(monthlyCashFlow);
// Color coding for cash flow
if (monthlyCashFlow >= 0) {
cashFlowEl.className = "rpc-result-value rpc-positive";
} else {
cashFlowEl.className = "rpc-result-value rpc-negative";
}
var roiEl = document.getElementById('rpc-res-roi');
roiEl.innerText = cashOnCashROI.toFixed(2) + "%";
if (cashOnCashROI >= 0) {
roiEl.className = "rpc-result-value rpc-positive";
} else {
roiEl.className = "rpc-result-value rpc-negative";
}
document.getElementById('rpc-res-cap').innerText = capRate.toFixed(2) + "%";
}