.rental-roi-calculator-wrapper {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
border: 1px solid #e2e8f0;
border-radius: 12px;
background: #ffffff;
box-shadow: 0 4px 6px -1px rgba(0, 0, 0, 0.1);
overflow: hidden;
}
.rental-calc-header {
background: #2c3e50;
color: white;
padding: 24px;
text-align: center;
}
.rental-calc-header h2 {
margin: 0;
font-size: 24px;
}
.rental-calc-body {
padding: 24px;
display: grid;
grid-template-columns: 1fr 1fr;
gap: 24px;
}
@media (max-width: 768px) {
.rental-calc-body {
grid-template-columns: 1fr;
}
}
.input-group {
margin-bottom: 16px;
}
.input-group label {
display: block;
font-weight: 600;
margin-bottom: 8px;
color: #4a5568;
font-size: 14px;
}
.input-group input {
width: 100%;
padding: 10px;
border: 1px solid #cbd5e0;
border-radius: 6px;
font-size: 16px;
box-sizing: border-box;
transition: border-color 0.2s;
}
.input-group input:focus {
border-color: #3182ce;
outline: none;
box-shadow: 0 0 0 3px rgba(49, 130, 206, 0.1);
}
.calc-btn-container {
grid-column: 1 / -1;
text-align: center;
margin-top: 10px;
}
.calc-btn {
background-color: #3182ce;
color: white;
border: none;
padding: 14px 32px;
font-size: 18px;
font-weight: bold;
border-radius: 8px;
cursor: pointer;
transition: background-color 0.2s;
width: 100%;
max-width: 300px;
}
.calc-btn:hover {
background-color: #2b6cb0;
}
.rental-results {
grid-column: 1 / -1;
background-color: #f7fafc;
border-radius: 8px;
padding: 20px;
border: 1px solid #edf2f7;
margin-top: 20px;
display: none;
}
.results-grid {
display: grid;
grid-template-columns: repeat(2, 1fr);
gap: 16px;
}
@media (max-width: 600px) {
.results-grid {
grid-template-columns: 1fr;
}
}
.result-item {
background: white;
padding: 15px;
border-radius: 6px;
border: 1px solid #e2e8f0;
text-align: center;
}
.result-label {
font-size: 13px;
color: #718096;
text-transform: uppercase;
letter-spacing: 0.5px;
margin-bottom: 5px;
}
.result-value {
font-size: 24px;
font-weight: 800;
color: #2d3748;
}
.result-value.positive { color: #38a169; }
.result-value.negative { color: #e53e3e; }
.roi-article {
margin-top: 40px;
padding: 20px;
line-height: 1.6;
color: #2d3748;
border-top: 1px solid #e2e8f0;
}
.roi-article h3 {
color: #2c3e50;
font-size: 20px;
margin-top: 25px;
}
.roi-article p {
margin-bottom: 15px;
}
.roi-article ul {
margin-bottom: 15px;
padding-left: 20px;
}
.roi-article li {
margin-bottom: 8px;
}
function calculateRentalROI() {
// 1. Get Input Values
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value);
var downPayment = parseFloat(document.getElementById('downPayment').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var loanTerm = parseFloat(document.getElementById('loanTerm').value);
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value);
var propertyTax = parseFloat(document.getElementById('propertyTax').value);
var insurance = parseFloat(document.getElementById('insurance').value);
var monthlyMisc = parseFloat(document.getElementById('monthlyExpenses').value);
// 2. Validate Inputs
if (isNaN(purchasePrice) || isNaN(downPayment) || isNaN(interestRate) ||
isNaN(loanTerm) || isNaN(monthlyRent) || isNaN(propertyTax) ||
isNaN(insurance) || isNaN(monthlyMisc)) {
alert("Please enter valid numbers in all fields.");
return;
}
// 3. Calculate Mortgage Payment (Principal & Interest)
var loanAmount = purchasePrice – downPayment;
var monthlyRate = (interestRate / 100) / 12;
var totalPayments = loanTerm * 12;
var mortgagePayment = 0;
if (monthlyRate > 0) {
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, totalPayments)) / (Math.pow(1 + monthlyRate, totalPayments) – 1);
} else {
mortgagePayment = loanAmount / totalPayments;
}
// 4. Calculate Operating Expenses & NOI
var monthlyTax = propertyTax / 12;
var monthlyInsurance = insurance / 12;
var totalMonthlyExpenses = monthlyTax + monthlyInsurance + monthlyMisc;
// Net Operating Income (NOI) = Income – Operating Expenses (Excluding Mortgage)
var monthlyNOI = monthlyRent – totalMonthlyExpenses;
var annualNOI = monthlyNOI * 12;
// 5. Calculate Cash Flow
var monthlyCashFlow = monthlyNOI – mortgagePayment;
var annualCashFlow = monthlyCashFlow * 12;
// 6. Calculate Returns
// Cap Rate = (Annual NOI / Purchase Price) * 100
var capRate = (annualNOI / purchasePrice) * 100;
// Cash on Cash = (Annual Cash Flow / Total Cash Invested) * 100
// assuming Total Cash Invested is mostly the Down Payment for this simplified calc
var cashInvested = downPayment;
// Prevent division by zero
var cashOnCash = 0;
if (cashInvested > 0) {
cashOnCash = (annualCashFlow / cashInvested) * 100;
}
// 7. Update UI
document.getElementById('resultsArea').style.display = 'block';
// Format Currency
var fmt = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' });
// Mortgage
document.getElementById('mortgagePayment').innerText = fmt.format(mortgagePayment);
// NOI
document.getElementById('noiValue').innerText = fmt.format(annualNOI);
// Cash Flow with color coding
var cfElement = document.getElementById('monthlyCashFlow');
cfElement.innerText = fmt.format(monthlyCashFlow);
cfElement.className = monthlyCashFlow >= 0 ? "result-value positive" : "result-value negative";
// Cash on Cash with color coding
var cocElement = document.getElementById('cashOnCash');
cocElement.innerText = cashOnCash.toFixed(2) + "%";
cocElement.className = cashOnCash >= 0 ? "result-value positive" : "result-value negative";
// Cap Rate
document.getElementById('capRate').innerText = capRate.toFixed(2) + "%";
}
Rental Property ROI Calculator
Monthly Cash Flow
–
Cash on Cash Return
–
Cap Rate
–
Monthly Mortgage P&I
–
*Net Operating Income (NOI): $0 / year
How to Calculate Rental Property ROI
Understanding the return on investment (ROI) for a rental property is crucial for making informed real estate decisions. Unlike simple stock investments, real estate requires analyzing multiple variables including debt service, operating expenses, and rental income. This calculator focuses on two primary metrics used by investors: Cash on Cash Return and Cap Rate.
Key Metrics Explained
- Cash Flow: The net amount of cash moving in or out of the investment each month. It is calculated as Total Income – Total Expenses (including mortgage). Positive cash flow ensures the property pays for itself.
- Cash on Cash Return (CoC): This measures the annual return on the actual cash you invested (down payment + closing costs). It is calculated as (Annual Cash Flow / Total Cash Invested) × 100. A CoC above 8-10% is generally considered strong in many markets.
- Cap Rate (Capitalization Rate): This metric evaluates the profitability of the property irrespective of financing. It is calculated as (Net Operating Income / Purchase Price) × 100. It helps compare properties as if they were bought with all cash.
Improving Your Rental Yield
If your calculated ROI is lower than expected, consider strategies to increase value. This might include raising rents to match market rates, reducing operating inefficiencies (like lowering insurance premiums or utility costs), or increasing the down payment to lower the monthly mortgage burden, thereby improving immediate cash flow.