#rental-property-calculator-wrapperBox {
box-sizing: border-box;
}
.rpc-row {
display: flex;
flex-wrap: wrap;
margin: 0 -10px;
}
.rpc-col {
flex: 1;
padding: 0 10px;
min-width: 250px;
margin-bottom: 15px;
}
.rpc-label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #333;
}
.rpc-input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.rpc-btn {
background-color: #007bff;
color: white;
border: none;
padding: 12px 20px;
font-size: 18px;
border-radius: 4px;
cursor: pointer;
width: 100%;
transition: background 0.3s;
}
.rpc-btn:hover {
background-color: #0056b3;
}
.rpc-result-box {
background-color: #f8f9fa;
border: 1px solid #dee2e6;
border-radius: 6px;
padding: 20px;
margin-top: 20px;
display: none;
}
.rpc-metric {
display: flex;
justify-content: space-between;
align-items: center;
padding: 10px 0;
border-bottom: 1px solid #eee;
}
.rpc-metric:last-child {
border-bottom: none;
}
.rpc-metric-label {
color: #555;
font-size: 16px;
}
.rpc-metric-value {
font-weight: 700;
font-size: 18px;
color: #2c3e50;
}
.rpc-highlight {
color: #28a745;
}
.rpc-highlight-neg {
color: #dc3545;
}
.rpc-article {
margin-top: 40px;
line-height: 1.6;
color: #333;
}
.rpc-article h2 {
color: #2c3e50;
border-bottom: 2px solid #007bff;
padding-bottom: 10px;
}
.rpc-article h3 {
color: #444;
margin-top: 25px;
}
.rpc-faq {
background: #fdfdfd;
border-left: 4px solid #007bff;
padding: 15px;
margin: 20px 0;
}
function calculateRentalKPIs() {
// Get Input Values
var price = parseFloat(document.getElementById('rpcPrice').value);
var downPercent = parseFloat(document.getElementById('rpcDown').value);
var interestRate = parseFloat(document.getElementById('rpcRate').value);
var termYears = parseFloat(document.getElementById('rpcTerm').value);
var rent = parseFloat(document.getElementById('rpcRent').value);
var monthly expenses = parseFloat(document.getElementById('rpcExp').value);
// Validation
if (isNaN(price) || isNaN(downPercent) || isNaN(interestRate) || isNaN(termYears) || isNaN(rent) || isNaN(expenses)) {
alert("Please enter valid numbers in all fields.");
return;
}
// Calculations
var downPaymentAmount = price * (downPercent / 100);
var loanAmount = price – downPaymentAmount;
// Mortgage Calculation (P&I)
// M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
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);
}
// Total Monthly Expenses (Mortgage + OpEx)
var totalMonthlyExpenses = mortgagePayment + expenses;
// Cash Flow
var monthlyCashFlow = rent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// Cash on Cash ROI
// Formula: Annual Cash Flow / Total Cash Invested (assuming Down Payment is total investment for simplicity)
var cocRoi = 0;
if (downPaymentAmount > 0) {
cocRoi = (annualCashFlow / downPaymentAmount) * 100;
}
// Cap Rate
// Formula: (NOI / Price) * 100
// NOI (Net Operating Income) = (Rent – Operating Expenses) * 12. NOTE: Mortgage is NOT in NOI.
var monthlyNOI = rent – expenses;
var annualNOI = monthlyNOI * 12;
var capRate = (annualNOI / price) * 100;
// Display Results
document.getElementById('resMortgage').innerText = "$" + mortgagePayment.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
document.getElementById('resTotalExp').innerText = "$" + totalMonthlyExpenses.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
var cfElement = document.getElementById('resCashFlow');
cfElement.innerText = "$" + monthlyCashFlow.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
if (monthlyCashFlow >= 0) {
cfElement.className = "rpc-metric-value rpc-highlight";
} else {
cfElement.className = "rpc-metric-value rpc-highlight-neg";
}
document.getElementById('resCoc').innerText = cocRoi.toFixed(2) + "%";
document.getElementById('resCap').innerText = capRate.toFixed(2) + "%";
// Show Result Box
document.getElementById('rpcResult').style.display = "block";
}
Rental Property Cash Flow Calculator
(Taxes, Insurance, HOA, Repairs)
Investment Analysis
Monthly Mortgage Payment (P&I):
$0.00
Total Monthly Expenses:
$0.00
Net Monthly Cash Flow:
$0.00
Cash on Cash ROI:
$0.00%
Cap Rate:
$0.00%
Understanding Rental Property Cash Flow
Investing in real estate is one of the most reliable ways to build wealth, but it requires precise calculations to ensure profitability. The Rental Property Cash Flow Calculator helps investors determine if a property will generate positive income or result in a monthly loss. By inputting key variables such as purchase price, financing terms, and operating expenses, you can derive critical metrics like Cash on Cash Return and Cap Rate.
Key Investment Metrics Explained
When analyzing a rental property, three numbers are paramount:
- Net Monthly Cash Flow: This is the money left in your pocket after all expenses, including the mortgage, taxes, insurance, and repairs, have been paid. A positive cash flow is essential for long-term sustainability.
- Cash on Cash ROI (Return on Investment): This percentage measures the annual return on the actual cash you invested (down payment and closing costs). For example, if you invest $50,000 cash and receive $5,000 in annual net cash flow, your Cash on Cash ROI is 10%.
- Cap Rate (Capitalization Rate): This metric evaluates the profitability of the property irrespective of financing. It is calculated by dividing the Net Operating Income (NOI) by the property's current market value. It helps compare properties directly, regardless of how they are purchased (cash vs. loan).
Real-World Example
Consider a property listed for $300,000. You put 20% down ($60,000) and finance the rest at 6.5% interest for 30 years.
If the property rents for $2,500/month and your total operating expenses (taxes, insurance, HOA, maintenance) average $800/month, the calculator determines your mortgage payment. Assuming the mortgage is roughly $1,517, your total monthly outflows are $2,317.
Result: Your Net Monthly Cash Flow would be approximately $183. Your Cash on Cash ROI would be roughly 3.66%.
Why Operating Expenses Matter
Many new investors make the mistake of only calculating the mortgage payment against the rent. However, operating expenses often consume 30% to 50% of the rental income. Failing to account for:
- Vacancy rates (periods where the property sits empty)
- Capital expenditures (replacing a roof or HVAC)
- Property management fees
…can quickly turn a profitable deal into a financial burden. Always estimate expenses conservatively.
FAQ: What is a "good" Cash on Cash Return?
While this varies by market and strategy, many investors aim for a Cash on Cash return of 8% to 12%. In highly appreciating markets, investors might accept a lower cash flow (4-6%) in exchange for future equity growth.
While this varies by market and strategy, many investors aim for a Cash on Cash return of 8% to 12%. In highly appreciating markets, investors might accept a lower cash flow (4-6%) in exchange for future equity growth.