LTR ROI Calculator

The Long-Term Rent (STR) Return on Investment (ROI) calculator helps investors understand the financial risks and potential upside of a long‑term rental purchase. The calculator turns a complex investment decision into a clear, data‑driven snapshot for short‑term rentals that considers purchase costs, operating revenue assumptions, Hawaii taxes, and financing details. The calculator's outputs translate raw numbers into actionable insight.

• Annual Gross Rent - This is the total rent you expect to collect before any deductions. It establishes the top line of the investment — everything else flows from this number.
• Vacancy & Credit Loss - This accounts for months without a tenant, late payments, or non‑payment. Even in strong rental markets, vacancy is unavoidable.
• GET Tax - Hawaii’s General Excise Tax applies to rental income. It reduces your effective income and must be included to avoid overstating returns.
• Effective Gross Income (EGI) - Gross Rent less Vacancy Loss less GET representing the real income the property produces before expenses. It’s one of the most important numbers in rental analysis because it reflects actual earning power.
• Total Operating Expenses - This includes property tax, insurance, HOA, utilities, maintenance, and management. These are the recurring costs required to operate the property.
• Net Operating Income (NOI) - EGI less Operating Expenses is the property’s income before mortgage payments. NOI is the single most important metric for comparing investment properties.
• Annual Debt Service - This is the total principal plus interest paid on the mortgage each year. It determines how much of your NOI is consumed by financing. A lower debt service increases cash flow and ROI.
• Annual Cash Flow - NOI less Debt Service and shows how much money the property puts in your pocket each year. Positive cash flow means the investment is self‑sustaining. Negative cash flow means you must subsidize the property.
• Cash Invested - This is your actual cash outlay including any down payment and closing costs. Knowing your true cash invested helps you compare returns across different financing structures.
• Cash‑on‑Cash Return (CoC) - A measure of how hard your invested dollars are working. It’s the most investor‑friendly metric because it reflects your actual return on your actual cash. A higher CoC means better cash efficiency.
• Cap Rate - Measures the property’s yield independent of financing. It’s ideal for comparing properties or markets. Higher cap rates generally indicate stronger income performance relative to price.