.roi-calculator-container {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
max-width: 800px;
margin: 20px auto;
background: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 30px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.roi-calc-header {
text-align: center;
margin-bottom: 25px;
color: #2c3e50;
}
.roi-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.roi-grid {
grid-template-columns: 1fr;
}
}
.input-group {
margin-bottom: 15px;
}
.input-group label {
display: block;
font-weight: 600;
margin-bottom: 5px;
color: #34495e;
font-size: 0.9em;
}
.input-group input {
width: 100%;
padding: 10px;
border: 1px solid #bdc3c7;
border-radius: 4px;
font-size: 1em;
box-sizing: border-box;
}
.input-group input:focus {
border-color: #3498db;
outline: none;
}
.calc-btn {
grid-column: 1 / -1;
background-color: #27ae60;
color: white;
border: none;
padding: 15px;
font-size: 1.1em;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
transition: background 0.3s;
width: 100%;
margin-top: 10px;
}
.calc-btn:hover {
background-color: #219150;
}
.results-section {
grid-column: 1 / -1;
background: #fff;
border: 1px solid #ddd;
border-radius: 4px;
padding: 20px;
margin-top: 20px;
display: none;
}
.result-row {
display: flex;
justify-content: space-between;
padding: 10px 0;
border-bottom: 1px solid #eee;
}
.result-row:last-child {
border-bottom: none;
}
.result-label {
color: #7f8c8d;
}
.result-value {
font-weight: bold;
color: #2c3e50;
}
.highlight-result {
color: #27ae60;
font-size: 1.2em;
}
.negative-result {
color: #c0392b;
font-size: 1.2em;
}
.seo-content {
max-width: 800px;
margin: 40px auto;
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
line-height: 1.6;
color: #333;
}
.seo-content h2 {
color: #2c3e50;
border-bottom: 2px solid #27ae60;
padding-bottom: 10px;
margin-top: 30px;
}
.seo-content h3 {
color: #2980b9;
margin-top: 25px;
}
.seo-content p {
margin-bottom: 15px;
}
.seo-content ul {
margin-bottom: 15px;
padding-left: 20px;
}
.seo-content li {
margin-bottom: 8px;
}
function calculateROI() {
// 1. Get Input Values
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value) || 0;
var closingCosts = parseFloat(document.getElementById('closingCosts').value) || 0;
var downPaymentPercent = parseFloat(document.getElementById('downPayment').value) || 0;
var interestRate = parseFloat(document.getElementById('interestRate').value) || 0;
var loanTerm = parseFloat(document.getElementById('loanTerm').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 monthlyHoa = parseFloat(document.getElementById('monthlyHoa').value) || 0;
var maintenancePercent = parseFloat(document.getElementById('maintenance').value) || 0;
// 2. Calculate Initial Investment
var downPaymentAmount = purchasePrice * (downPaymentPercent / 100);
var loanAmount = purchasePrice – downPaymentAmount;
var totalInitialInvestment = downPaymentAmount + closingCosts;
// 3. Calculate Mortgage (P&I)
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
var monthlyMortgage = 0;
if (interestRate > 0) {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else {
monthlyMortgage = loanAmount / numberOfPayments;
}
// 4. Calculate Expenses
var monthlyTax = propertyTax / 12;
var monthlyInsurance = insurance / 12;
var monthlyMaintenance = monthlyRent * (maintenancePercent / 100);
var totalMonthlyExpenses = monthlyMortgage + monthlyTax + monthlyInsurance + monthlyHoa + monthlyMaintenance;
// 5. Calculate Metrics
var monthlyCashFlow = monthlyRent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// Net Operating Income (NOI) = Income – Operating Expenses (excluding financing)
var annualOperatingExpenses = (monthlyTax + monthlyInsurance + monthlyHoa + monthlyMaintenance) * 12;
var noi = (monthlyRent * 12) – annualOperatingExpenses;
// Cap Rate = NOI / Purchase Price
var capRate = (noi / purchasePrice) * 100;
// Cash on Cash Return = Annual Cash Flow / Total Initial Investment
var cashOnCash = (annualCashFlow / totalInitialInvestment) * 100;
// 6. Display Results
document.getElementById('resTotalInvestment').innerText = formatCurrency(totalInitialInvestment);
document.getElementById('resMortgage').innerText = formatCurrency(monthlyMortgage);
document.getElementById('resExpenses').innerText = formatCurrency(totalMonthlyExpenses);
var cfElement = document.getElementById('resCashFlow');
cfElement.innerText = formatCurrency(monthlyCashFlow);
if (monthlyCashFlow >= 0) {
cfElement.className = "result-value highlight-result";
} else {
cfElement.className = "result-value negative-result";
}
document.getElementById('resNOI').innerText = formatCurrency(noi);
document.getElementById('resCapRate').innerText = capRate.toFixed(2) + "%";
var cocElement = document.getElementById('resCoC');
cocElement.innerText = cashOnCash.toFixed(2) + "%";
if (cashOnCash >= 0) {
cocElement.className = "result-value highlight-result";
} else {
cocElement.className = "result-value negative-result";
}
document.getElementById('resultsArea').style.display = 'block';
}
function formatCurrency(num) {
return "$" + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
Understanding Rental Property ROI
Investing in real estate is a powerful vehicle for wealth generation, but success relies heavily on the numbers. Using a Rental Property ROI Calculator is essential for investors to evaluate the profitability of a potential purchase before signing any contracts. This tool breaks down complex financial metrics into actionable insights.
Key Metrics Explained
1. Cash Flow
Cash flow is the net amount of cash moving into or out of your investment each month. It is calculated by subtracting your total monthly expenses (mortgage, taxes, insurance, HOA, and maintenance reserves) from your monthly rental income. Positive cash flow means the property pays for itself and generates profit, while negative cash flow requires you to contribute money monthly to keep the property afloat.
2. Cash on Cash Return (CoC)
Cash on Cash Return is perhaps the most critical metric for rental investors. It measures the annual pre-tax cash flow relative to the total cash invested (down payment + closing costs). Unlike general ROI, which might account for loan paydown or appreciation, CoC focuses purely on the efficiency of your liquid capital.
Formula: (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100
3. Cap Rate (Capitalization Rate)
The Cap Rate measures the property's natural rate of return assuming it was bought with cash (no loan). It is calculated by dividing the Net Operating Income (NOI) by the property's purchase price. This metric allows investors to compare properties apples-to-apples without the influence of mortgage financing variables.
Example Calculation
Consider a property listed for $250,000. You plan to put 20% down ($50,000) and expect closing costs of $5,000. Your total initial investment is $55,000.
- Monthly Rent: $2,000
- Monthly Expenses (Mortgage + Taxes + Insurance + Etc): $1,700
- Monthly Cash Flow: $300
- Annual Cash Flow: $3,600
In this scenario, your Cash on Cash Return would be: ($3,600 / $55,000) = 6.54%. This indicates that for every dollar you invested, you are earning 6.5 cents back annually in pure cash flow, excluding appreciation and tax benefits.
Why Use This Calculator?
Real estate markets fluctuate, and "gut feelings" are not enough for financial decisions. By inputting specific variables such as interest rates, vacancy rates (maintenance), and HOA fees, you can stress-test your investment. A property that looks good at a 4% interest rate might become a liability at 7%. Use this calculator to ensure your investment meets your financial goals regardless of market conditions.