#rental-roi-calculator-container .calc-box {
background: #f9fbfd;
border: 1px solid #e1e4e8;
border-radius: 8px;
padding: 30px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
margin-bottom: 40px;
}
#rental-roi-calculator-container h2 {
text-align: center;
color: #2c3e50;
margin-bottom: 25px;
font-size: 28px;
}
#rental-roi-calculator-container .form-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
#rental-roi-calculator-container .input-group {
margin-bottom: 15px;
}
#rental-roi-calculator-container label {
display: block;
margin-bottom: 8px;
font-weight: 600;
font-size: 14px;
color: #555;
}
#rental-roi-calculator-container input[type="number"] {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
transition: border-color 0.3s;
}
#rental-roi-calculator-container input[type="number"]:focus {
border-color: #0073aa;
outline: none;
}
#rental-roi-calculator-container button.calc-btn {
background-color: #0073aa;
color: white;
border: none;
padding: 15px 30px;
font-size: 18px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
width: 100%;
margin-top: 20px;
transition: background-color 0.3s;
}
#rental-roi-calculator-container button.calc-btn:hover {
background-color: #005177;
}
#rental-roi-calculator-container .results-section {
background: #fff;
border: 1px solid #ddd;
border-radius: 6px;
padding: 20px;
margin-top: 30px;
display: none;
}
#rental-roi-calculator-container .result-row {
display: flex;
justify-content: space-between;
padding: 10px 0;
border-bottom: 1px solid #eee;
}
#rental-roi-calculator-container .result-row:last-child {
border-bottom: none;
}
#rental-roi-calculator-container .result-label {
font-weight: 500;
}
#rental-roi-calculator-container .result-value {
font-weight: 700;
font-size: 18px;
color: #2c3e50;
}
#rental-roi-calculator-container .roi-highlight {
color: #27ae60;
font-size: 22px;
}
#rental-roi-calculator-container .error-msg {
color: #d32f2f;
text-align: center;
margin-top: 10px;
display: none;
}
@media (max-width: 600px) {
#rental-roi-calculator-container .form-grid {
grid-template-columns: 1fr;
}
}
#rental-roi-calculator-container .article-content h3 {
color: #0073aa;
margin-top: 30px;
}
#rental-roi-calculator-container .article-content ul {
margin-bottom: 20px;
}
#rental-roi-calculator-container .article-content li {
margin-bottom: 10px;
}
Understanding Rental Property ROI and Cash Flow
Investing in real estate is one of the most reliable ways to build wealth, but not every property is a good deal. To ensure profitability, investors must look beyond the sticker price and analyze the numbers deeply. Our Rental Property ROI Calculator is designed to help you determine the viability of a potential investment by calculating two critical metrics: Monthly Cash Flow and Cash-on-Cash Return on Investment (ROI).
What is Cash Flow?
Cash flow is the net income from a real estate investment after mortgage payments and operating expenses have been made. Positive cash flow is essential for a sustainable investment.
The Formula:
Cash Flow = Total Monthly Income – Total Monthly Expenses
Total expenses include your mortgage payment (principal and interest) plus operating costs such as property taxes, insurance, maintenance, property management fees, and vacancy reserves. If your cash flow is negative, the property is a liability, costing you money every month to hold.
What is Cash-on-Cash ROI?
Cash-on-Cash ROI measures the annual return you made on the property in relation to the amount of mortgage paid during the same year. It is considered one of the most important metrics in real estate investing because it tells you how hard your actual cash is working for you.
The Formula:
Cash on Cash ROI = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100%
"Total Cash Invested" isn't just the down payment; it also includes closing costs and any immediate repair costs incurred before renting out the property.
How to Use This Calculator
To get the most accurate results, ensure you have gathered realistic data for your target market:
- Purchase Price: The agreed-upon price of the property.
- Down Payment: Typically 20-25% for investment properties to avoid PMI and secure better interest rates.
- Interest Rate & Term: Current mortgage rates significantly impact your monthly payment. Most investment loans are 30-year fixed terms.
- Monthly Expenses: Do not underestimate this! A common rule of thumb is the "50% Rule," suggesting that 50% of income goes to expenses (excluding mortgage), though itemizing specifics (Taxes, Insurance, HOA, Maintenance) is more accurate.
What is a "Good" ROI?
While target returns vary by investor and market strategy, a Cash-on-Cash ROI of 8% to 12% is generally considered a solid return for a long-term rental. Some aggressive investors look for 15% or higher, while those in high-appreciation markets might accept 4-5% cash flow in exchange for future equity growth.
Remember, this calculator provides a snapshot based on your inputs. It does not account for tax benefits (depreciation), loan principal paydown, or property appreciation, which typically increase the total return over time.
function calculateRentalROI() {
// Get Input Values
var price = parseFloat(document.getElementById('propPrice').value);
var downPaymentPercent = parseFloat(document.getElementById('downPaymentPercent').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var termYears = parseFloat(document.getElementById('loanTerm').value);
var closingCosts = parseFloat(document.getElementById('closingCosts').value);
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value);
var monthlyOpsExpenses = parseFloat(document.getElementById('monthlyExpenses').value);
// Get Result Elements
var resCashInvested = document.getElementById('resCashInvested');
var resMortgage = document.getElementById('resMortgage');
var resTotalExpenses = document.getElementById('resTotalExpenses');
var resMonthlyCashFlow = document.getElementById('resMonthlyCashFlow');
var resAnnualCashFlow = document.getElementById('resAnnualCashFlow');
var resROI = document.getElementById('resROI');
var resultsArea = document.getElementById('resultsArea');
var errorDisplay = document.getElementById('errorDisplay');
// Validation
if (isNaN(price) || isNaN(downPaymentPercent) || isNaN(interestRate) || isNaN(termYears) || isNaN(monthlyRent) || isNaN(monthlyOpsExpenses)) {
errorDisplay.style.display = 'block';
resultsArea.style.display = 'none';
return;
}
if (price <= 0 || termYears 0) {
roi = (annualCashFlow / totalCashInvested) * 100;
}
// 5. Formatting Helper
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
// 6. Update UI
resCashInvested.innerHTML = formatter.format(totalCashInvested);
resMortgage.innerHTML = formatter.format(mortgagePayment);
resTotalExpenses.innerHTML = formatter.format(totalMonthlyExpenses);
resMonthlyCashFlow.innerHTML = formatter.format(monthlyCashFlow);
resAnnualCashFlow.innerHTML = formatter.format(annualCashFlow);
resROI.innerHTML = roi.toFixed(2) + '%';
// Styling for positive/negative cash flow
if (monthlyCashFlow >= 0) {
resMonthlyCashFlow.style.color = '#27ae60';
resROI.style.color = '#27ae60';
} else {
resMonthlyCashFlow.style.color = '#c0392b';
resROI.style.color = '#c0392b';
}
// Show Results
resultsArea.style.display = 'block';
}