.calculator-wrapper {
max-width: 800px;
margin: 0 auto;
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
color: #333;
line-height: 1.6;
}
.calc-container {
background: #f9f9f9;
padding: 30px;
border-radius: 8px;
box-shadow: 0 4px 15px rgba(0,0,0,0.1);
margin-bottom: 40px;
border: 1px solid #e1e1e1;
}
.calc-header {
text-align: center;
margin-bottom: 25px;
color: #2c3e50;
}
.input-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.input-grid {
grid-template-columns: 1fr;
}
}
.input-group {
margin-bottom: 15px;
}
.input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
font-size: 14px;
}
.input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.input-group input:focus {
border-color: #3498db;
outline: none;
}
.btn-calc {
grid-column: 1 / -1;
background: #27ae60;
color: white;
border: none;
padding: 15px;
font-size: 18px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
transition: background 0.3s;
margin-top: 10px;
width: 100%;
}
.btn-calc:hover {
background: #219150;
}
.results-section {
grid-column: 1 / -1;
background: #fff;
padding: 20px;
border-radius: 6px;
border: 1px solid #eee;
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-value {
font-weight: bold;
color: #2c3e50;
}
.highlight-result {
color: #27ae60;
font-size: 1.2em;
}
.bad-result {
color: #c0392b;
}
.seo-content {
padding: 20px 0;
}
.seo-content h2 {
color: #2c3e50;
margin-top: 30px;
}
.seo-content p {
margin-bottom: 15px;
}
.seo-content ul {
margin-bottom: 15px;
padding-left: 20px;
}
.seo-content li {
margin-bottom: 8px;
}
Rental Property ROI & Cash Flow Calculator
Investing in real estate is one of the most reliable ways to build wealth, but simply buying a property doesn't guarantee profit. To ensure a rental property is a sound investment, you must accurately calculate your Return on Investment (ROI) and monthly cash flow. Our specific Rental Property ROI Calculator breaks down the complex costs associated with being a landlord, including mortgage payments, taxes, insurance, and maintenance reserves.
Understanding Key Real Estate Investment Metrics
This calculator focuses on the two most critical metrics for rental property investors: Cash on Cash Return and Cap Rate. Understanding the difference between these two is vital for making informed purchasing decisions.
1. Cash on Cash Return (CoC ROI)
Cash on Cash Return measures the annual pre-tax cash flow divided by the total cash invested. This is often considered the "true" ROI for investors using leverage (mortgages) because it calculates the return on the actual dollars you took out of your pocket.
- Formula: (Annual Cash Flow / Total Cash Invested) × 100
- Total Cash Invested: Includes down payment, closing costs, and immediate repair costs.
- Good Target: Many investors aim for a CoC return of 8-12% or higher.
2. Capitalization Rate (Cap Rate)
The Cap Rate measures the natural rate of return on the property as if you paid all cash. It helps compare the profitability of one property against another, regardless of how they are financed.
- Formula: (Net Operating Income / Purchase Price) × 100
- Net Operating Income (NOI): Rental income minus operating expenses (excluding mortgage payments).
How to Calculate Rental Property Cash Flow
Positive cash flow is the lifeblood of a rental portfolio. It represents the money left over after all expenses are paid. Our calculator accounts for often-overlooked expenses to give you a realistic picture:
- Vacancy & Maintenance: We include a percentage input (typically 5-10% each) to account for months when the unit is empty or when repairs are needed. Ignoring this can lead to negative cash flow surprises.
- Operating Expenses: These include property taxes, landlord insurance, and HOA fees which significantly eat into rental income.
- Debt Service: The principal and interest payments on your loan.
Interpreting Your Results
After entering your purchase details and income expectations, review the Monthly Cash Flow figure. If this number is negative, the property is a liability that costs you money every month to hold. If it is positive, the property is an asset generating passive income. A high Cash on Cash ROI generally indicates a strong investment, but ensure your estimates for rent and maintenance are conservative to avoid risk.
function calculateROI() {
// 1. Get Inputs
var price = parseFloat(document.getElementById('purchasePrice').value);
var downPercent = parseFloat(document.getElementById('downPaymentPercent').value);
var closingCosts = parseFloat(document.getElementById('closingCosts').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var termYears = parseFloat(document.getElementById('loanTerm').value);
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value);
var annualTaxes = parseFloat(document.getElementById('annualTaxes').value);
var annualInsurance = parseFloat(document.getElementById('annualInsurance').value);
var monthlyHOA = parseFloat(document.getElementById('monthlyHOA').value);
var maintPercent = parseFloat(document.getElementById('maintenance').value);
// Validation
if (isNaN(price) || isNaN(downPercent) || isNaN(monthlyRent)) {
alert("Please enter valid numbers for Price, Down Payment, and Rent.");
return;
}
// 2. Calculate Mortgage (P&I)
var downPaymentAmount = price * (downPercent / 100);
var loanAmount = price – downPaymentAmount;
var monthlyRate = (interestRate / 100) / 12;
var numPayments = termYears * 12;
var monthlyPI = 0;
if (interestRate === 0) {
monthlyPI = loanAmount / numPayments;
} else {
monthlyPI = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
}
// 3. Calculate Expenses
var monthlyTaxes = annualTaxes / 12;
var monthlyIns = annualInsurance / 12;
var monthlyMaint = monthlyRent * (maintPercent / 100);
var totalOperatingExpenses = monthlyTaxes + monthlyIns + monthlyHOA + monthlyMaint;
var totalExpensesWithMortgage = totalOperatingExpenses + monthlyPI;
// 4. Calculate Key Metrics
// Net Operating Income (NOI) = Rent – Operating Expenses (Excluding Mortgage)
var monthlyNOI = monthlyRent – totalOperatingExpenses;
var annualNOI = monthlyNOI * 12;
// Cash Flow = NOI – Mortgage
var monthlyCashFlow = monthlyNOI – monthlyPI;
var annualCashFlow = monthlyCashFlow * 12;
// Total Cash Invested
var totalCashInvested = downPaymentAmount + closingCosts;
// ROI Metrics
var capRate = (annualNOI / price) * 100;
var cashOnCash = (annualCashFlow / totalCashInvested) * 100;
// 5. Display Results
document.getElementById('resMortgage').innerText = formatCurrency(monthlyPI);
document.getElementById('resTotalExpenses').innerText = formatCurrency(totalExpensesWithMortgage);
document.getElementById('resNOI').innerText = formatCurrency(monthlyNOI);
var cfEl = document.getElementById('resCashFlow');
cfEl.innerText = formatCurrency(monthlyCashFlow);
if(monthlyCashFlow >= 0) {
cfEl.className = "result-value highlight-result";
cfEl.style.color = "#27ae60";
} else {
cfEl.className = "result-value bad-result";
cfEl.style.color = "#c0392b";
}
document.getElementById('resCapRate').innerText = capRate.toFixed(2) + "%";
var cocEl = document.getElementById('resCoC');
cocEl.innerText = cashOnCash.toFixed(2) + "%";
if(cashOnCash >= 0) {
cocEl.style.color = "#27ae60";
} else {
cocEl.style.color = "#c0392b";
}
// Show results div
document.getElementById('results').style.display = 'block';
}
function formatCurrency(num) {
return "$" + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}