.rental-roi-calculator-container {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
background: #fff;
padding: 20px;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.roi-calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 768px) {
.roi-calc-grid {
grid-template-columns: 1fr;
}
}
.roi-input-group {
margin-bottom: 15px;
}
.roi-input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #333;
font-size: 14px;
}
.roi-input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.roi-input-group input:focus {
border-color: #2c7be5;
outline: none;
box-shadow: 0 0 0 2px rgba(44,123,229,0.2);
}
.roi-btn {
background-color: #2c7be5;
color: white;
border: none;
padding: 15px 30px;
font-size: 16px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
width: 100%;
margin-top: 10px;
transition: background-color 0.2s;
}
.roi-btn:hover {
background-color: #1a68d1;
}
.roi-results-section {
background-color: #f8f9fa;
padding: 20px;
border-radius: 6px;
margin-top: 20px;
border-left: 5px solid #2c7be5;
}
.roi-result-item {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
padding-bottom: 10px;
border-bottom: 1px solid #e9ecef;
}
.roi-result-item:last-child {
border-bottom: none;
margin-bottom: 0;
padding-bottom: 0;
}
.roi-result-label {
color: #555;
font-weight: 500;
}
.roi-result-value {
font-weight: 800;
color: #2c7be5;
font-size: 18px;
}
.roi-article {
margin-top: 40px;
line-height: 1.6;
color: #333;
}
.roi-article h2 {
font-size: 24px;
margin-bottom: 15px;
color: #1a1a1a;
}
.roi-article h3 {
font-size: 20px;
margin-top: 25px;
margin-bottom: 10px;
color: #2c7be5;
}
.roi-article p {
margin-bottom: 15px;
}
.roi-article ul {
margin-bottom: 15px;
padding-left: 20px;
}
.roi-article li {
margin-bottom: 8px;
}
function calculateRentalROI() {
// Get inputs
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value) || 0;
var downPayment = parseFloat(document.getElementById('downPayment').value) || 0;
var interestRate = parseFloat(document.getElementById('interestRate').value) || 0;
var loanTerm = parseFloat(document.getElementById('loanTerm').value) || 0;
var closingCosts = parseFloat(document.getElementById('closingCosts').value) || 0;
var rehabCosts = parseFloat(document.getElementById('rehabCosts').value) || 0;
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var propertyTax = parseFloat(document.getElementById('propertyTax').value) || 0;
var insurance = parseFloat(document.getElementById('insurance').value) || 0;
var hoa = parseFloat(document.getElementById('hoa').value) || 0;
var maintenance = parseFloat(document.getElementById('maintenance').value) || 0;
var vacancy = parseFloat(document.getElementById('vacancy').value) || 0;
// 1. Calculate Mortgage Payment
var loanAmount = purchasePrice – downPayment;
var monthlyMortgage = 0;
if (loanAmount > 0 && interestRate > 0 && loanTerm > 0) {
var monthlyRate = interestRate / 100 / 12;
var numberOfPayments = loanTerm * 12;
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
}
// 2. Calculate Annual Expenses (Operating)
// Monthly operating expenses: HOA + Maintenance + Vacancy + (Tax/12) + (Insurance/12)
var monthlyOperatingExpenses = hoa + maintenance + vacancy + (propertyTax / 12) + (insurance / 12);
var annualOperatingExpenses = monthlyOperatingExpenses * 12;
// 3. Calculate Income Metrics
var annualGrossIncome = monthlyRent * 12;
var annualNOI = annualGrossIncome – annualOperatingExpenses;
var annualDebtService = monthlyMortgage * 12;
var annualCashFlow = annualNOI – annualDebtService;
var monthlyCashFlow = annualCashFlow / 12;
// 4. Calculate Investment Metrics
var totalCashInvested = downPayment + closingCosts + rehabCosts;
var cashOnCashReturn = 0;
if (totalCashInvested > 0) {
cashOnCashReturn = (annualCashFlow / totalCashInvested) * 100;
}
var capRate = 0;
if (purchasePrice > 0) {
capRate = (annualNOI / purchasePrice) * 100;
}
// Display Results
document.getElementById('resultsArea').style.display = 'block';
document.getElementById('resultCoC').innerHTML = cashOnCashReturn.toFixed(2) + "%";
document.getElementById('resultCashFlow').innerHTML = "$" + monthlyCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resultNOI').innerHTML = "$" + annualNOI.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + " / yr";
document.getElementById('resultCapRate').innerHTML = capRate.toFixed(2) + "%";
document.getElementById('resultTotalInvested').innerHTML = "$" + totalCashInvested.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
}
Understanding Rental Property ROI
Investing in real estate is a powerful way to build wealth, but not every property is a good deal. To effectively evaluate a rental property, you need to look beyond the monthly rent and understand your actual Return on Investment (ROI). This calculator helps you determine the Cash-on-Cash return, Cap Rate, and monthly cash flow of a potential investment.
What is Cash-on-Cash Return?
Cash-on-Cash (CoC) return is arguably the most important metric for real estate investors. It measures the annual pre-tax cash flow generated by the property relative to the total amount of cash invested. Unlike standard ROI, which might consider the total loan amount, CoC focuses specifically on the liquidity of your investment.
The Formula:
Cash-on-Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100%
For example, if you invest $50,000 cash (down payment + closing costs) and the property generates $5,000 in net positive cash flow per year, your Cash-on-Cash return is 10%.
Net Operating Income (NOI) vs. Cash Flow
It is crucial to distinguish between NOI and Cash Flow:
- NOI (Net Operating Income): This is your total revenue minus all operating expenses (taxes, insurance, maintenance, vacancy). It does not include mortgage payments. NOI is used to calculate the Cap Rate.
- Cash Flow: This is what ends up in your pocket. It is calculated by taking the NOI and subtracting the debt service (your mortgage principal and interest).
What is a Good Cap Rate?
The Capitalization Rate (Cap Rate) helps you compare the profitability of a property assuming you bought it with all cash. It is calculated by dividing NOI by the property's purchase price. A "good" cap rate varies by market, but generally, investors look for cap rates between 5% and 10% for residential properties. A higher cap rate typically implies higher potential returns but may come with higher risk.
Key Factors Affecting Your Returns
To maximize your rental property ROI, keep a close eye on these variables:
- Vacancy Rate: Always budget for vacancy. A common standard is 5-8% of gross rent (approx. 2-4 weeks per year).
- Maintenance: Older homes often require 10-15% of rent for repairs, while newer homes might only need 5%.
- Financing: A lower interest rate or a longer loan term reduces your monthly mortgage payment, instantly increasing your monthly cash flow.
Use this calculator to adjust these variables and see how different scenarios impact the profitability of your potential rental property investment.