Analyze your real estate investment potential with professional metrics.
Investment Analysis Results
Monthly Mortgage (P&I):$0.00
Total Monthly Expenses:$0.00
Monthly Cash Flow:$0.00
Total Initial Investment:$0.00
Cap Rate:0.00%
Cash-on-Cash Return:0.00%
function calculateRentalROI() {
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value) || 0;
var downPaymentPercent = parseFloat(document.getElementById('downPaymentPercent').value) || 0;
var interestRate = parseFloat(document.getElementById('interestRate').value) || 0;
var closingCosts = parseFloat(document.getElementById('closingCosts').value) || 0;
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var annualTaxes = parseFloat(document.getElementById('annualTaxes').value) || 0;
var annualInsurance = parseFloat(document.getElementById('annualInsurance').value) || 0;
var monthlyMaintenance = parseFloat(document.getElementById('monthlyMaintenance').value) || 0;
// Down Payment Calculation
var downPaymentAmount = purchasePrice * (downPaymentPercent / 100);
var loanAmount = purchasePrice – downPaymentAmount;
var totalInitialInvestment = downPaymentAmount + closingCosts;
// Mortgage Calculation (Monthly)
var monthlyInterest = (interestRate / 100) / 12;
var numberOfPayments = 30 * 12; // Standard 30 year term
var monthlyMortgage = 0;
if (interestRate > 0) {
monthlyMortgage = loanAmount * (monthlyInterest * Math.pow(1 + monthlyInterest, numberOfPayments)) / (Math.pow(1 + monthlyInterest, numberOfPayments) – 1);
} else {
monthlyMortgage = loanAmount / numberOfPayments;
}
// Monthly Expenses
var monthlyTax = annualTaxes / 12;
var monthlyInsurance = annualInsurance / 12;
var totalMonthlyExpenses = monthlyMortgage + monthlyTax + monthlyInsurance + monthlyMaintenance;
// Cash Flow
var monthlyCashFlow = monthlyRent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// Cap Rate (NOI / Purchase Price)
var annualNOI = (monthlyRent * 12) – (annualTaxes + annualInsurance + (monthlyMaintenance * 12));
var capRate = (annualNOI / purchasePrice) * 100;
// Cash on Cash Return (Annual Cash Flow / Total Cash Invested)
var cashOnCash = (annualCashFlow / totalInitialInvestment) * 100;
// Display results
document.getElementById('resMortgage').innerText = '$' + monthlyMortgage.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resExpenses').innerText = '$' + totalMonthlyExpenses.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resCashFlow').innerText = '$' + monthlyCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resInvestment').innerText = '$' + totalInitialInvestment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resCapRate').innerText = capRate.toFixed(2) + '%';
document.getElementById('resCoC').innerText = cashOnCash.toFixed(2) + '%';
document.getElementById('roi-results').style.display = 'block';
}
How to Calculate Rental Property ROI
Investing in real estate is one of the most reliable ways to build wealth, but only if the numbers make sense. This Rental ROI Calculator helps you look beyond the monthly rent and see the true profitability of a property.
Key Metrics Explained:
Cap Rate (Capitalization Rate): This measures the natural rate of return of a property without considering financing. It is calculated by dividing the Net Operating Income (NOI) by the purchase price. A "good" cap rate varies by market but often falls between 4% and 10%.
Cash-on-Cash Return: This is arguably the most important metric for investors using leverage (mortgages). It shows the annual cash return on the actual money you out-of-pocket (down payment + closing costs).
Net Cash Flow: This is the amount of money left in your pocket every month after every single expense—including the mortgage, taxes, insurance, and maintenance—has been paid.
Example Scenario:
Imagine you purchase a single-family home for $300,000 with 20% down ($60,000) and $6,000 in closing costs. Your total investment is $66,000. If the property rents for $2,500 and your total monthly expenses (including mortgage) are $2,100, your monthly cash flow is $400. That results in an annual cash flow of $4,800, giving you a 7.27% Cash-on-Cash Return.
Pro Tip for Investors
When using this calculator, always include a buffer for Vacancy Rates (usually 5-8%) and Capital Expenditures (CapEx) for big-ticket items like new roofs or HVAC systems. Successful investors prioritize properties that provide positive cash flow even after accounting for these "hidden" costs.