.roi-calc-container {
max-width: 800px;
margin: 20px auto;
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
color: #333;
background: #fff;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 30px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.roi-calc-row {
display: flex;
flex-wrap: wrap;
gap: 20px;
margin-bottom: 20px;
}
.roi-calc-col {
flex: 1;
min-width: 250px;
}
.roi-calc-label {
display: block;
font-weight: 600;
margin-bottom: 8px;
color: #2c3e50;
}
.roi-calc-input {
width: 100%;
padding: 12px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.roi-calc-input:focus {
border-color: #3498db;
outline: none;
box-shadow: 0 0 0 2px rgba(52,152,219,0.2);
}
.roi-calc-btn {
background-color: #27ae60;
color: white;
border: none;
padding: 15px 30px;
font-size: 18px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
width: 100%;
transition: background-color 0.3s;
}
.roi-calc-btn:hover {
background-color: #219150;
}
.roi-results-box {
background-color: #f8f9fa;
border-left: 5px solid #27ae60;
padding: 20px;
margin-top: 30px;
border-radius: 4px;
}
.roi-result-item {
display: flex;
justify-content: space-between;
align-items: center;
padding: 10px 0;
border-bottom: 1px solid #eee;
}
.roi-result-item:last-child {
border-bottom: none;
}
.roi-result-value {
font-weight: 800;
font-size: 18px;
color: #2c3e50;
}
.roi-article {
max-width: 800px;
margin: 40px auto;
line-height: 1.6;
color: #444;
}
.roi-article h2 {
color: #2c3e50;
margin-top: 30px;
}
.roi-article ul {
margin-bottom: 20px;
}
.roi-highlight {
color: #27ae60;
font-weight: bold;
}
function calculateRentalROI() {
// 1. Get Values
var price = parseFloat(document.getElementById('purchasePrice').value);
var down = parseFloat(document.getElementById('downPayment').value);
var rate = parseFloat(document.getElementById('interestRate').value);
var term = parseFloat(document.getElementById('loanTerm').value);
var rent = parseFloat(document.getElementById('monthlyRent').value);
var expenses = parseFloat(document.getElementById('monthlyExpenses').value);
// 2. Validate Inputs
if (isNaN(price) || isNaN(down) || isNaN(rate) || isNaN(term) || isNaN(rent) || isNaN(expenses)) {
alert("Please enter valid numbers in all fields.");
return;
}
if (price <= 0 || term 0) {
cashOnCash = (annualCashFlow / down) * 100;
}
// Net Operating Income (NOI) = (Rent – Operating Expenses) * 12
// Operating Expenses excludes mortgage
var annualNOI = (rent – expenses) * 12;
// Cap Rate = (NOI / Purchase Price) * 100
var capRate = (annualNOI / price) * 100;
// 5. Display Results
document.getElementById('resMortgage').innerHTML = "$" + monthlyMortgage.toFixed(2);
var cashFlowEl = document.getElementById('resCashFlow');
cashFlowEl.innerHTML = "$" + monthlyCashFlow.toFixed(2);
// Color code cash flow
if (monthlyCashFlow >= 0) {
cashFlowEl.style.color = "#27ae60";
} else {
cashFlowEl.style.color = "#c0392b";
}
document.getElementById('resCOC').innerHTML = cashOnCash.toFixed(2) + "%";
document.getElementById('resCapRate').innerHTML = capRate.toFixed(2) + "%";
document.getElementById('roiResultSection').style.display = 'block';
}
Understanding Rental Property ROI: A Complete Guide
Investing in real estate is one of the most proven pathways to building long-term wealth. However, the difference between a profitable investment and a financial burden often comes down to the numbers. Using a Rental Property ROI Calculator is essential for investors to objectively analyze the potential performance of a property before signing on the dotted line.
Why Use a Rental Property ROI Calculator?
Real estate analysis involves multiple variables that interact in complex ways. A property might have a high rental income, but if the operating expenses and mortgage payments are too high, your actual profit could be negligible or negative. This calculator helps you determine three critical metrics:
- Cash Flow: The net money left in your pocket every month after all bills are paid.
- Cash-on-Cash Return (CoC): A percentage that measures the return on the actual cash you invested (down payment), providing a clear picture of your money's efficiency.
- Cap Rate (Capitalization Rate): A metric that indicates the potential return of a property regardless of how it is financed, useful for comparing different properties directly.
Key Metrics Explained
1. Monthly Cash Flow
This is the lifeblood of any rental investment. It is calculated by subtracting your total monthly expenses (mortgage, taxes, insurance, maintenance) from your monthly rental income. Positive cash flow ensures the property pays for itself and generates income, while negative cash flow means you are paying out of pocket to hold the asset.
Formula: Monthly Rent – (Operating Expenses + Mortgage Payment)
2. Cash-on-Cash ROI
Unlike simple ROI, Cash-on-Cash return focuses specifically on the money you actually put into the deal (usually the down payment and closing costs). It answers the question: "For every dollar I invest, how much am I getting back annually?" Most investors aim for a CoC return of 8-12% or higher.
Formula: (Annual Cash Flow / Total Cash Invested) × 100
3. Cap Rate
The Cap Rate measures a property's natural rate of return. It is calculated based on the Net Operating Income (NOI) and the purchase price. Because it excludes mortgage costs, it is the standard for comparing the profitability of one building against another, regardless of financing terms.
Formula: (Net Operating Income / Purchase Price) × 100
How to Maximize Your ROI
Once you have run the numbers, you can improve your potential returns by:
- Reducing Operating Expenses: Shop around for cheaper insurance or handle minor maintenance tasks yourself.
- Increasing Rent: Modest renovations or adding amenities (like in-unit laundry) can justify a higher monthly rent.
- Refinancing: Securing a lower interest rate reduces your monthly mortgage payment, instantly boosting cash flow.
Use the calculator above to experiment with different scenarios—such as putting down a larger down payment or negotiating a lower purchase price—to see how they impact your bottom line.