.calculator-container-wrapper {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
color: #333;
line-height: 1.6;
}
.roi-calc-box {
background: #f8f9fa;
border: 1px solid #e9ecef;
border-radius: 8px;
padding: 30px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
margin-bottom: 40px;
}
.calc-title {
text-align: center;
color: #2c3e50;
margin-bottom: 25px;
font-size: 24px;
font-weight: 700;
}
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display: grid;
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gap: 20px;
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@media (max-width: 600px) {
.input-grid {
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width: 100%;
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border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
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outline: none;
border-color: #3498db;
box-shadow: 0 0 0 2px rgba(52,152,219,0.2);
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color: white;
border: none;
padding: 12px 20px;
font-size: 16px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
width: 100%;
margin-top: 10px;
transition: background 0.3s;
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.calc-btn:hover {
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padding: 15px;
border-radius: 6px;
border: 1px solid #eee;
text-align: center;
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background: #e8f6ef;
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text-transform: uppercase;
letter-spacing: 0.5px;
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margin-top: 30px;
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padding-bottom: 10px;
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What is Cash on Cash Return?
Cash on Cash Return (CoC) is one of the most important metrics for real estate investors. Unlike a standard Return on Investment (ROI) calculation which might look at total equity gains, CoC specifically measures the annual pre-tax cash flow relative to the actual amount of cash you invested.
This metric is critical because it tells you how hard your money is working for you. For example, if you invest $50,000 in cash to buy a rental property and it generates $5,000 in net profit per year, your Cash on Cash Return is 10%.
How to Calculate Rental Property ROI
Our calculator uses the industry-standard formula for determining the profitability of a rental asset. The calculation involves several steps:
1. Determine Total Cash Invested
This is the denominator of the equation. It includes your down payment, closing costs, and any immediate repair or rehabilitation costs required to get the property rented.
Formula: Down Payment + Closing Costs + Rehab Costs
2. Calculate Monthly Mortgage Payment
If you are financing the property, we calculate the principal and interest payment based on your loan amount (Price – Down Payment), interest rate, and loan term.
3. Calculate Net Operating Cash Flow
We subtract all money leaving the property from the rental income.
Formula: Monthly Rent – (Mortgage Payment + Taxes + Insurance + HOA + Maintenance + Vacancy)
4. The Final CoC Formula
Finally, we annualize the monthly cash flow and divide it by your total cash investment.
Formula: (Annual Net Cash Flow / Total Cash Invested) × 100
What is a Good Cash on Cash Return?
The definition of a "good" return varies by investor and market strategy, but here are general benchmarks for rental properties:
- 8-12%: Generally considered a solid return in most stable real estate markets.
- 15%+: Considered excellent, often found in lower-cost markets or properties requiring significant value-add (BRRRR method).
- Below 5%: Might be acceptable in high-appreciation markets (like San Francisco or NYC) where the goal is long-term equity growth rather than immediate cash flow.
Factors Affecting Your ROI
When using this calculator, ensure you are accounting for "hidden" expenses to get an accurate result. Common oversights include:
- Vacancy Rate: Properties are rarely occupied 100% of the time. Budget for 5-8% vacancy.
- CapEx (Capital Expenditures): Roofs, HVAC systems, and water heaters eventually need replacement. Setting aside reserves monthly is crucial.
- Property Management: Even if you self-manage now, calculating a 10% management fee helps determine if the deal is good enough to eventually outsource.
function calculateROI() {
// Get Input Values
var price = parseFloat(document.getElementById('purchasePrice').value);
var downPayment = parseFloat(document.getElementById('downPayment').value);
var closingCosts = parseFloat(document.getElementById('closingCosts').value);
var rate = parseFloat(document.getElementById('loanRate').value);
var termYears = parseFloat(document.getElementById('loanTerm').value);
var rent = parseFloat(document.getElementById('monthlyRent').value);
var expenses = parseFloat(document.getElementById('monthlyExpenses').value);
// Validation checks
if (isNaN(price) || isNaN(downPayment) || isNaN(rent) || isNaN(expenses)) {
alert("Please fill in all required fields with valid numbers.");
return;
}
// 1. Calculate Loan Details
var loanAmount = price – downPayment;
var monthlyMortgage = 0;
if (loanAmount > 0) {
if (rate === 0) {
monthlyMortgage = loanAmount / (termYears * 12);
} else {
var monthlyRate = (rate / 100) / 12;
var numberOfPayments = termYears * 12;
// Standard Mortgage Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
}
}
// 2. Calculate Cash Flow
var totalMonthlyOutflow = monthlyMortgage + expenses;
var monthlyCashFlow = rent – totalMonthlyOutflow;
var annualCashFlow = monthlyCashFlow * 12;
// 3. Calculate Cash Invested
var totalCashInvested = downPayment + closingCosts;
// 4. Calculate Cash on Cash Return
var cocReturn = 0;
if (totalCashInvested > 0) {
cocReturn = (annualCashFlow / totalCashInvested) * 100;
}
// Display Results
// Format currency helper
var fmt = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' });
document.getElementById('resMortgage').innerText = fmt.format(monthlyMortgage);
document.getElementById('resMonthlyCashflow').innerText = fmt.format(monthlyCashFlow);
document.getElementById('resAnnualCashflow').innerText = fmt.format(annualCashFlow);
document.getElementById('resCashInvested').innerText = fmt.format(totalCashInvested);
// Format Percentage with color logic
var cocElem = document.getElementById('resCoc');
cocElem.innerText = cocReturn.toFixed(2) + "%";
if (cocReturn 12) {
cocElem.style.color = "#27ae60"; // Green for great
} else {
cocElem.style.color = "#2980b9"; // Blue for moderate
}
// Show results area
document.getElementById('resultsArea').style.display = 'block';
}