.rp-calculator-wrapper {
max-width: 800px;
margin: 0 auto;
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
color: #333;
background: #fff;
border: 1px solid #e1e1e1;
border-radius: 8px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.rp-calc-header {
background-color: #2c3e50;
color: white;
padding: 20px;
border-radius: 8px 8px 0 0;
text-align: center;
}
.rp-calc-header h2 {
margin: 0;
font-size: 24px;
}
.rp-calc-body {
padding: 30px;
display: flex;
flex-wrap: wrap;
gap: 30px;
}
.rp-input-section {
flex: 1;
min-width: 300px;
}
.rp-result-section {
flex: 1;
min-width: 300px;
background-color: #f8f9fa;
padding: 20px;
border-radius: 8px;
border: 1px solid #e9ecef;
}
.rp-input-group {
margin-bottom: 15px;
}
.rp-input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
font-size: 14px;
}
.rp-input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.rp-btn {
width: 100%;
padding: 12px;
background-color: #27ae60;
color: white;
border: none;
border-radius: 4px;
font-size: 16px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.3s;
margin-top: 10px;
}
.rp-btn:hover {
background-color: #219150;
}
.rp-result-row {
display: flex;
justify-content: space-between;
padding: 10px 0;
border-bottom: 1px solid #e1e1e1;
}
.rp-result-row:last-child {
border-bottom: none;
}
.rp-result-label {
color: #666;
}
.rp-result-value {
font-weight: bold;
font-size: 18px;
color: #2c3e50;
}
.rp-highlight {
color: #27ae60;
font-size: 22px;
}
.rp-article {
max-width: 800px;
margin: 40px auto;
line-height: 1.6;
color: #444;
}
.rp-article h2 {
color: #2c3e50;
margin-top: 30px;
}
.rp-article h3 {
color: #27ae60;
margin-top: 25px;
}
.rp-article ul {
margin-bottom: 20px;
}
.rp-article li {
margin-bottom: 10px;
}
Investment Analysis
Annual Gross Income:
$0.00
Vacancy Loss:
$0.00
Total Annual Expenses:
$0.00
Net Operating Income (NOI):
$0.00
Gross Rental Yield:
0.00%
Net Rental Yield (Cap Rate):
0.00%
Monthly Cash Flow:
$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 profit. To succeed, investors must accurately calculate their Return on Investment (ROI). This Rental Property ROI Calculator helps you determine the viability of a potential investment by breaking down yields and cash flow.
Why Use a Rental Yield Calculator?
Real estate math involves more than just subtracting mortgage payments from rent. Hidden costs like vacancy rates, maintenance, and insurance can significantly eat into your profits. By inputting specific data points like your purchase price ($250,000) and expected rent ($2,000), you can visualize whether a property is an asset or a liability before you sign any papers.
Key Metrics Explained
- Gross Rental Yield: This is a quick "back of the napkin" calculation. It represents your annual rental income divided by the property price. While useful for screening, it ignores expenses.
- Net Rental Yield (Cap Rate): This is the gold standard for comparing properties. It calculates your return based on Net Operating Income (NOI), which accounts for taxes, insurance, and maintenance. A higher percentage generally indicates a better deal.
- Net Operating Income (NOI): This figure represents the total income the property generates after all operating expenses are paid, but before mortgage payments and taxes.
- Cash Flow: The actual money left in your pocket at the end of the month or year. Positive cash flow is essential for long-term sustainability.
What is a "Good" Rental Yield?
While target yields vary by location and strategy, many investors look for a Gross Yield of 8-12% and a Net Yield (Cap Rate) of 5-8%. However, in high-appreciation markets, investors might accept lower monthly yields in exchange for long-term property value growth.
How to Improve Your ROI
If the calculator shows a lower return than expected, consider these strategies:
- Increase Rent: Can minor renovations allow you to charge more?
- Reduce Vacancy: Long-term tenants reduce turnover costs.
- Appeal Property Taxes: Ensure your assessment is fair.
- Negotiate Purchase Price: Buying right is the most effective way to boost yield immediately.
function calculateRentalYield() {
// 1. Get Input Values
var price = parseFloat(document.getElementById('purchasePrice').value);
var rent = parseFloat(document.getElementById('monthlyRent').value);
var vacancyRate = parseFloat(document.getElementById('vacancyRate').value);
var taxes = parseFloat(document.getElementById('annualTaxes').value);
var insurance = parseFloat(document.getElementById('annualInsurance').value);
var maintenance = parseFloat(document.getElementById('maintenanceCosts').value);
// 2. Validation
if (isNaN(price) || price <= 0) {
alert("Please enter a valid Purchase Price.");
return;
}
if (isNaN(rent) || rent <= 0) {
alert("Please enter a valid Monthly Rent.");
return;
}
// Set default values for optional fields if empty
if (isNaN(vacancyRate)) vacancyRate = 0;
if (isNaN(taxes)) taxes = 0;
if (isNaN(insurance)) insurance = 0;
if (isNaN(maintenance)) maintenance = 0;
// 3. Perform Calculations
var annualGrossRent = rent * 12;
var vacancyLoss = annualGrossRent * (vacancyRate / 100);
var effectiveGrossIncome = annualGrossRent – vacancyLoss;
var totalExpenses = taxes + insurance + maintenance;
var netOperatingIncome = effectiveGrossIncome – totalExpenses;
var grossYield = (annualGrossRent / price) * 100;
var netYield = (netOperatingIncome / price) * 100;
var monthlyCashFlow = netOperatingIncome / 12;
// 4. Update UI
// Helper format currency
var formatCurrency = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
document.getElementById('resultGrossIncome').innerText = formatCurrency.format(annualGrossRent);
document.getElementById('resultVacancy').innerText = "-" + formatCurrency.format(vacancyLoss);
document.getElementById('resultExpenses').innerText = "-" + formatCurrency.format(totalExpenses);
document.getElementById('resultNOI').innerText = formatCurrency.format(netOperatingIncome);
document.getElementById('resultGrossYield').innerText = grossYield.toFixed(2) + "%";
document.getElementById('resultNetYield').innerText = netYield.toFixed(2) + "%";
document.getElementById('resultMonthlyCashFlow').innerText = formatCurrency.format(monthlyCashFlow);
// Add visual feedback for negative cashflow
var cashFlowElement = document.getElementById('resultMonthlyCashFlow');
if (monthlyCashFlow < 0) {
cashFlowElement.style.color = "#c0392b";
} else {
cashFlowElement.style.color = "#27ae60";
}
}