#rental-property-calculator-tool {
font-family: 'Segoe UI', Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
color: #333;
line-height: 1.6;
}
.rpc-calculator-box {
background-color: #f8f9fa;
border: 1px solid #e9ecef;
border-radius: 8px;
padding: 30px;
margin-bottom: 40px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.rpc-title {
text-align: center;
color: #2c3e50;
margin-bottom: 25px;
font-size: 24px;
font-weight: 700;
}
.rpc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.rpc-grid {
grid-template-columns: 1fr;
}
}
.rpc-input-group {
margin-bottom: 15px;
}
.rpc-input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
font-size: 14px;
color: #495057;
}
.rpc-input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ced4da;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.rpc-input-group input:focus {
border-color: #4CAF50;
outline: none;
box-shadow: 0 0 0 2px rgba(76, 175, 80, 0.2);
}
.rpc-section-header {
grid-column: 1 / -1;
font-size: 18px;
border-bottom: 2px solid #e9ecef;
padding-bottom: 10px;
margin-top: 10px;
margin-bottom: 15px;
color: #2c3e50;
}
.rpc-btn {
grid-column: 1 / -1;
background-color: #2c3e50;
color: white;
border: none;
padding: 15px;
font-size: 18px;
font-weight: bold;
border-radius: 5px;
cursor: pointer;
transition: background-color 0.2s;
margin-top: 10px;
}
.rpc-btn:hover {
background-color: #34495e;
}
.rpc-results {
grid-column: 1 / -1;
background-color: #ffffff;
border: 1px solid #dee2e6;
border-radius: 6px;
padding: 20px;
margin-top: 20px;
display: none;
}
.rpc-results.visible {
display: grid;
grid-template-columns: repeat(2, 1fr);
gap: 15px;
}
.rpc-result-item {
padding: 10px;
background: #f1f3f5;
border-radius: 4px;
text-align: center;
}
.rpc-result-label {
font-size: 13px;
color: #6c757d;
text-transform: uppercase;
letter-spacing: 0.5px;
}
.rpc-result-value {
font-size: 20px;
font-weight: 700;
color: #2c3e50;
margin-top: 5px;
}
.rpc-result-value.positive {
color: #28a745;
}
.rpc-result-value.negative {
color: #dc3545;
}
.rpc-content {
margin-top: 40px;
}
.rpc-content h2 {
font-size: 28px;
color: #2c3e50;
border-bottom: 2px solid #2c3e50;
padding-bottom: 10px;
margin-top: 40px;
}
.rpc-content h3 {
font-size: 22px;
color: #2c3e50;
margin-top: 30px;
}
.rpc-content p {
font-size: 16px;
color: #4a4a4a;
margin-bottom: 15px;
}
.rpc-content ul {
margin-bottom: 20px;
padding-left: 20px;
}
.rpc-content li {
margin-bottom: 10px;
}
function calculateRentalROI() {
// Get inputs
var price = parseFloat(document.getElementById('rpcPrice').value);
var downPercent = parseFloat(document.getElementById('rpcDownPercent').value);
var closingCosts = parseFloat(document.getElementById('rpcClosingCosts').value);
var interestRate = parseFloat(document.getElementById('rpcInterest').value);
var termYears = parseFloat(document.getElementById('rpcTerm').value);
var monthlyRent = parseFloat(document.getElementById('rpcRent').value);
var monthlyExpenses = parseFloat(document.getElementById('rpcExpenses').value);
// Validation
if (isNaN(price) || isNaN(downPercent) || isNaN(interestRate) || isNaN(termYears) || isNaN(monthlyRent) || isNaN(monthlyExpenses)) {
alert("Please enter valid numbers in all fields.");
return;
}
// Calculations
var downPaymentAmount = price * (downPercent / 100);
var loanAmount = price – downPaymentAmount;
var totalInitialInvestment = downPaymentAmount + closingCosts;
// Mortgage Calculation (Monthly)
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = termYears * 12;
var mortgagePayment = 0;
if (interestRate === 0) {
mortgagePayment = loanAmount / numberOfPayments;
} else {
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
}
// Operating Metrics
var totalMonthlyExpenses = monthlyExpenses + mortgagePayment;
var monthlyCashFlow = monthlyRent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// Net Operating Income (NOI) = Income – Operating Expenses (excluding mortgage)
var annualNOI = (monthlyRent * 12) – (monthlyExpenses * 12);
// ROI Metrics
var cashOnCashRoi = (annualCashFlow / totalInitialInvestment) * 100;
var capRate = (annualNOI / price) * 100;
// Display Results
var resCashFlowEl = document.getElementById('resCashFlow');
var resCocEl = document.getElementById('resCoc');
var resCapRateEl = document.getElementById('resCapRate');
var resMortgageEl = document.getElementById('resMortgage');
var resultsDiv = document.getElementById('rpcResults');
resultsDiv.classList.add('visible');
// Format Currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
resCashFlowEl.innerHTML = formatter.format(monthlyCashFlow);
resMortgageEl.innerHTML = formatter.format(mortgagePayment);
resCocEl.innerHTML = cashOnCashRoi.toFixed(2) + '%';
resCapRateEl.innerHTML = capRate.toFixed(2) + '%';
// Styling for positive/negative values
resCashFlowEl.className = 'rpc-result-value ' + (monthlyCashFlow >= 0 ? 'positive' : 'negative');
resCocEl.className = 'rpc-result-value ' + (cashOnCashRoi >= 0 ? 'positive' : 'negative');
}
Mastering Rental Property Analysis
Investing in real estate is one of the most reliable ways to build long-term wealth. However, the difference between a profitable asset and a financial burden lies in the numbers. This Rental Property ROI Calculator is designed to help investors accurately predict cash flow and return on investment before signing on the dotted line.
What is Cash on Cash ROI?
Cash on Cash Return on Investment (CoC ROI) is arguably the most important metric for rental property investors. Unlike simple ROI, which might look at the total value of the asset, CoC ROI focuses specifically on the money you actually invested out-of-pocket (your down payment plus closing costs).
The formula used in this calculator is:
- Annual Pre-Tax Cash Flow / Total Cash Invested = Cash on Cash ROI
For example, if you invest $50,000 to buy a property and it generates $5,000 in net positive cash flow per year, your CoC ROI is 10%. This metric allows you to compare real estate returns directly against other investment vehicles like stocks or bonds.
Understanding Cap Rate
The Capitalization Rate (Cap Rate) helps you evaluate the profitability of a property independent of how you finance it. It is calculated by dividing the Net Operating Income (NOI) by the purchase price. A higher Cap Rate generally indicates a higher potential return, but may also come with higher risk (e.g., properties in less desirable neighborhoods).
Key Metrics Explained
- Net Operating Income (NOI): This is your total annual revenue minus all necessary operating expenses (taxes, insurance, maintenance, management fees). Note that NOI does not include mortgage payments.
- Monthly Cash Flow: The net amount of money piling up in (or disappearing from) your bank account each month after all expenses and mortgage payments are made. Positive cash flow is essential for long-term sustainability.
- Operating Expenses: A common mistake for new investors is underestimating expenses. Ensure your "Monthly Expenses" input includes property taxes, insurance, HOA fees, vacancy reserves (usually 5-10%), and maintenance reserves.
Frequently Asked Questions
What is a "good" Cash on Cash ROI?
While this varies by market and investor goals, many professional investors aim for a CoC ROI of 8-12% or higher. In highly appreciative markets, investors might accept a lower cash flow return (4-6%) in exchange for potential equity growth.
Should I include vacancy in monthly expenses?
Yes. Even in hot markets, tenants move out. It is prudent to allocate 5% to 8% of the monthly rent toward a vacancy fund so you aren't caught off guard during turnover periods.