.calculator-container {
max-width: 800px;
margin: 0 auto;
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
padding: 20px;
background: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
}
.calc-header {
text-align: center;
margin-bottom: 30px;
}
.calc-header h2 {
color: #2c3e50;
margin-bottom: 10px;
}
.calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.calc-grid {
grid-template-columns: 1fr;
}
}
.input-group {
margin-bottom: 15px;
}
.input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #34495e;
}
.input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
box-sizing: border-box;
font-size: 16px;
}
.input-group .currency-symbol {
position: relative;
}
.input-group .currency-symbol:before {
content: '$';
position: absolute;
left: 10px;
top: 10px;
color: #7f8c8d;
}
.input-group .currency-symbol input {
padding-left: 25px;
}
.calc-button {
grid-column: 1 / -1;
background-color: #27ae60;
color: white;
border: none;
padding: 15px;
font-size: 18px;
border-radius: 4px;
cursor: pointer;
transition: background-color 0.3s;
margin-top: 10px;
width: 100%;
}
.calc-button:hover {
background-color: #219150;
}
.results-section {
grid-column: 1 / -1;
background: #fff;
padding: 20px;
border-radius: 4px;
margin-top: 20px;
border-left: 5px solid #27ae60;
display: none;
}
.result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
padding-bottom: 10px;
border-bottom: 1px solid #eee;
}
.result-row:last-child {
border-bottom: none;
}
.result-label {
color: #7f8c8d;
font-weight: 500;
}
.result-value {
font-weight: bold;
color: #2c3e50;
}
.result-highlight {
font-size: 1.2em;
color: #27ae60;
}
.result-negative {
color: #c0392b;
}
.article-content {
margin-top: 40px;
line-height: 1.6;
color: #333;
}
.article-content h3 {
color: #2c3e50;
border-bottom: 2px solid #27ae60;
padding-bottom: 10px;
margin-top: 30px;
}
.article-content p {
margin-bottom: 15px;
}
.article-content ul {
margin-bottom: 15px;
padding-left: 20px;
}
Understanding Your Rental Property Analysis
Investing in real estate is a numbers game. To ensure your investment yields a profit, you must accurately calculate your cash flow and return on investment (ROI). This Rental Property Cash Flow Calculator helps investors determine if a potential property is a sound financial decision.
Key Metrics Explained
1. Monthly Cash Flow
This is the most critical metric for buy-and-hold investors. It represents the net amount of money left in your pocket each month after all expenses are paid.
Formula: Rental Income – (Mortgage + Taxes + Insurance + HOA + Maintenance + Vacancy Reserves)
Positive cash flow ensures the property pays for itself, while negative cash flow means you are losing money every month to hold the asset.
2. Cash-on-Cash Return (CoC)
Cash-on-Cash return measures the annual return on the actual cash you invested (down payment + closing costs + rehab costs). Unlike Cap Rate, this metric takes financing into account.
For example, if you invest $50,000 cash and receive $5,000 in annual positive cash flow, your CoC return is 10%. A good CoC return varies by market, but many investors target 8-12%.
3. Cap Rate (Capitalization Rate)
Cap Rate indicates the rate of return on a property assuming it was purchased entirely with cash. It is calculated by dividing the Net Operating Income (NOI) by the purchase price.
This metric is useful for comparing the profitability of different properties regardless of how they are financed. Higher Cap Rates generally imply higher risk or lower asset quality, while lower Cap Rates are found in stable, high-demand areas.
How to Optimize Your Results
- Increase Rent: Small increases in monthly rent can significantly boost your CoC return.
- Lower Expenses: Shop for cheaper insurance or manage the property yourself to reduce management fees.
- Refinance: Securing a lower interest rate reduces your mortgage payment, directly increasing monthly cash flow.
function calculateRentalROI() {
// Get Input Values
var price = parseFloat(document.getElementById('prop_price').value);
var downPayment = parseFloat(document.getElementById('prop_down').value);
var interestRate = parseFloat(document.getElementById('prop_rate').value);
var loanTerm = parseFloat(document.getElementById('prop_term').value);
var monthlyRent = parseFloat(document.getElementById('prop_rent').value);
var monthlyOpex = parseFloat(document.getElementById('prop_opex').value);
// Validation
if (isNaN(price) || isNaN(downPayment) || isNaN(interestRate) || isNaN(loanTerm) || isNaN(monthlyRent) || isNaN(monthlyOpex)) {
alert("Please fill in all fields with valid numbers.");
return;
}
// Calculations
var loanAmount = price – downPayment;
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
// Mortgage Calculation
var monthlyMortgage = 0;
if (interestRate === 0) {
monthlyMortgage = loanAmount / numberOfPayments;
} else {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
}
var totalMonthlyExpenses = monthlyMortgage + monthlyOpex;
var monthlyCashFlow = monthlyRent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// NOI (Net Operating Income) Calculation (Income – Operating Expenses, excluding financing)
var monthlyNOI = monthlyRent – monthlyOpex;
var annualNOI = monthlyNOI * 12;
// ROI Metrics
var cashOnCash = 0;
if (downPayment > 0) {
cashOnCash = (annualCashFlow / downPayment) * 100;
}
var capRate = 0;
if (price > 0) {
capRate = (annualNOI / price) * 100;
}
// Display Results
document.getElementById('results').style.display = 'block';
// Helper to format currency
var formatMoney = function(num) {
return '$' + num.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
};
// Helper to format percent
var formatPercent = function(num) {
return num.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}) + '%';
};
document.getElementById('res_mortgage').innerText = formatMoney(monthlyMortgage);
document.getElementById('res_total_exp').innerText = formatMoney(totalMonthlyExpenses);
document.getElementById('res_noi').innerText = formatMoney(monthlyNOI);
var cashFlowElem = document.getElementById('res_cashflow');
cashFlowElem.innerText = formatMoney(monthlyCashFlow);
// Color coding for cash flow
if (monthlyCashFlow >= 0) {
cashFlowElem.classList.remove('result-negative');
cashFlowElem.classList.add('result-highlight');
} else {
cashFlowElem.classList.remove('result-highlight');
cashFlowElem.classList.add('result-negative');
}
document.getElementById('res_coc').innerText = formatPercent(cashOnCash);
document.getElementById('res_cap').innerText = formatPercent(capRate);
}