#rental-roi-calculator-wrapper .calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
margin-bottom: 25px;
}
@media (max-width: 768px) {
#rental-roi-calculator-wrapper .calc-grid {
grid-template-columns: 1fr;
}
}
#rental-roi-calculator-wrapper .input-group {
margin-bottom: 15px;
}
#rental-roi-calculator-wrapper label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #333;
font-size: 0.95rem;
}
#rental-roi-calculator-wrapper input[type="number"] {
width: 100%;
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 1rem;
box-sizing: border-box;
}
#rental-roi-calculator-wrapper input[type="number"]:focus {
border-color: #2c3e50;
outline: none;
}
#rental-roi-calculator-wrapper .section-title {
grid-column: 1 / -1;
font-size: 1.1rem;
color: #2c3e50;
border-bottom: 2px solid #eee;
padding-bottom: 5px;
margin-top: 10px;
margin-bottom: 15px;
}
#rental-roi-calculator-wrapper .calc-btn {
background-color: #007bff;
color: white;
border: none;
padding: 15px 30px;
font-size: 1.1rem;
border-radius: 5px;
cursor: pointer;
width: 100%;
font-weight: bold;
transition: background 0.3s;
}
#rental-roi-calculator-wrapper .calc-btn:hover {
background-color: #0056b3;
}
#rental-roi-calculator-wrapper .results-box {
background-color: #f8f9fa;
border: 1px solid #e9ecef;
border-radius: 8px;
padding: 20px;
margin-top: 30px;
}
#rental-roi-calculator-wrapper .result-row {
display: flex;
justify-content: space-between;
align-items: center;
padding: 10px 0;
border-bottom: 1px solid #eee;
}
#rental-roi-calculator-wrapper .result-row:last-child {
border-bottom: none;
}
#rental-roi-calculator-wrapper .result-label {
color: #555;
font-weight: 500;
}
#rental-roi-calculator-wrapper .result-value {
font-weight: 700;
font-size: 1.1rem;
color: #2c3e50;
}
#rental-roi-calculator-wrapper .highlight-positive {
color: #28a745 !important;
}
#rental-roi-calculator-wrapper .highlight-negative {
color: #dc3545 !important;
}
#rental-roi-calculator-wrapper .seo-article {
margin-top: 40px;
line-height: 1.6;
color: #444;
}
#rental-roi-calculator-wrapper h2 {
color: #2c3e50;
margin-top: 30px;
}
#rental-roi-calculator-wrapper p {
margin-bottom: 15px;
}
#rental-roi-calculator-wrapper ul {
margin-bottom: 15px;
padding-left: 20px;
}
#rental-roi-calculator-wrapper li {
margin-bottom: 8px;
}
function calculateRentalROI() {
// Get Input Values
var price = parseFloat(document.getElementById('propPrice').value) || 0;
var closing = parseFloat(document.getElementById('closingCosts').value) || 0;
var downPercent = parseFloat(document.getElementById('downPaymentPercent').value) || 0;
var rate = parseFloat(document.getElementById('interestRate').value) || 0;
var years = parseFloat(document.getElementById('loanTerm').value) || 0;
var rent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var tax = parseFloat(document.getElementById('propertyTax').value) || 0;
var insurance = parseFloat(document.getElementById('insurance').value) || 0;
var hoa = parseFloat(document.getElementById('hoa').value) || 0;
var maint = parseFloat(document.getElementById('maintenance').value) || 0;
var vacancyRate = parseFloat(document.getElementById('vacancy').value) || 0;
// Calculations
var downPaymentAmount = price * (downPercent / 100);
var loanAmount = price – downPaymentAmount;
// Mortgage Payment Calculation (Principal + Interest)
var monthlyRate = (rate / 100) / 12;
var numberOfPayments = years * 12;
var mortgagePayment = 0;
if (rate > 0) {
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else {
mortgagePayment = loanAmount / numberOfPayments;
}
// Adjust Rent for Vacancy
var vacancyCost = rent * (vacancyRate / 100);
var effectiveRent = rent – vacancyCost;
// Operating Expenses (Tax, Ins, HOA, Maint, Vacancy is loss of income but counted in NOI usually as deduction from Gross)
// NOI = Gross Income – Operating Expenses (Excluding Mortgage)
var totalOperatingExpenses = tax + insurance + hoa + maint; // Vacancy is usually subtracted from Gross Potential Rent to get Effective Gross Income
var noiMonthly = effectiveRent – totalOperatingExpenses;
var noiAnnual = noiMonthly * 12;
// Total Expenses for Cash Flow (Includes Mortgage)
var totalMonthlyExpenses = totalOperatingExpenses + mortgagePayment; // Note: Vacancy is already deducted from income
// Cash Flow
var monthlyCashFlow = effectiveRent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// Investment Returns
var totalInitialInvestment = downPaymentAmount + closing;
var cocReturn = 0;
if (totalInitialInvestment > 0) {
cocReturn = (annualCashFlow / totalInitialInvestment) * 100;
}
var capRate = 0;
if (price > 0) {
capRate = (noiAnnual / price) * 100;
}
// Display Results
document.getElementById('dispMortgage').innerText = formatCurrency(mortgagePayment);
document.getElementById('dispExpenses').innerText = formatCurrency(totalMonthlyExpenses + vacancyCost); // Showing total cost including vacancy loss for clarity
document.getElementById('dispNOI').innerText = formatCurrency(noiMonthly);
var cfElement = document.getElementById('dispCashFlow');
cfElement.innerText = formatCurrency(monthlyCashFlow);
if (monthlyCashFlow >= 0) {
cfElement.className = "result-value highlight-positive";
} else {
cfElement.className = "result-value highlight-negative";
}
var cocElement = document.getElementById('dispCoC');
cocElement.innerText = cocReturn.toFixed(2) + "%";
if (cocReturn >= 0) {
cocElement.className = "result-value highlight-positive";
} else {
cocElement.className = "result-value highlight-negative";
}
document.getElementById('dispCapRate').innerText = capRate.toFixed(2) + "%";
document.getElementById('dispInvestment').innerText = formatCurrency(totalInitialInvestment);
document.getElementById('resultsArea').style.display = 'block';
}
function formatCurrency(num) {
return "$" + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
{
"@context": "https://schema.org",
"@type": "FAQPage",
"mainEntity": [{
"@type": "Question",
"name": "What is Cash on Cash Return?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Cash on Cash Return measures the annual return on the actual cash invested in the property. It is calculated by dividing the annual pre-tax cash flow by the total initial cash investment (down payment + closing costs)."
}
}, {
"@type": "Question",
"name": "How is Cap Rate calculated?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Cap Rate is calculated by dividing the Net Operating Income (NOI) by the current market value or purchase price of the property. It represents the potential return on an investment assuming it was paid for in all cash."
}
}, {
"@type": "Question",
"name": "What expenses should be included in a rental ROI calculation?",
"acceptedAnswer": {
"@type": "Answer",
"text": "You should include mortgage payments (principal and interest), property taxes, homeowners insurance, HOA fees, estimated maintenance costs (usually 5-10% of rent), vacancy reserves, and property management fees if applicable."
}
}]
}
Purchase Information
Rental Income & Expenses (Monthly)
Investment Analysis
Monthly Mortgage Payment (P&I):
$0.00
Total Monthly Expenses:
$0.00
Net Operating Income (Monthly):
$0.00
Monthly Cash Flow:
$0.00
Annual Returns
Cash on Cash Return:
0.00%
Cap Rate:
0.00%
Total Initial Investment:
$0.00
Understanding Rental Property ROI
Investing in real estate is a powerful way to build wealth, but simply buying a property doesn't guarantee a profit. To succeed, investors must accurately calculate their Return on Investment (ROI). This Rental Property ROI Calculator helps you analyze the profitability of a potential investment by factoring in mortgage costs, operating expenses, and rental income.
Key Metrics Explained
1. Cash Flow
Cash flow is the net amount of cash moving in and out of a business. In real estate, positive cash flow occurs when your monthly rental income exceeds your total monthly expenses, including the mortgage, taxes, and maintenance. Positive cash flow is essential for a sustainable long-term investment.
2. Cash-on-Cash Return (CoC)
This metric measures the annual return on the actual cash you invested, rather than the total purchase price. It is calculated as:
Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
A "good" CoC return varies by market, but many investors aim for 8-12%.
3. Cap Rate (Capitalization Rate)
Cap rate measures the property's natural rate of return assuming it was bought with cash (no mortgage). It helps compare the profitability of different properties regardless of financing.
Cap Rate = (Net Operating Income / Property Price) × 100
How to Maximize Your Rental Returns
- Reduce Vacancy: Keep tenants happy and maintain the property to avoid long turnover periods.
- Increase Rent Strategically: Make small improvements (like painting or new fixtures) to justify higher rent.
- Minimize Expenses: Shop around for insurance and appeal property tax assessments if they seem too high.
Frequently Asked Questions
What is the 1% Rule?
The 1% rule is a quick screening tool suggesting that the monthly rent should be at least 1% of the purchase price. For example, a $200,000 home should rent for at least $2,000/month to likely be profitable.
Does this calculator include appreciation?
This calculator focuses on cash flow and immediate returns (Cap Rate and CoC). It does not forecast property value appreciation, which is speculative but can add significant long-term wealth.