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Rental Property Cash on Cash Return Calculator

Analyze your real estate investment performance instantly.

(Taxes, Insurance, HOA, Vacancy, Maintenance)

Investment Analysis

Cash on Cash Return
0.00%
Monthly Cash Flow
$0.00
Total Cash Invested
$0.00
Annual Cash Flow
$0.00
Monthly Mortgage
$0.00
Cap Rate
0.00%

What is Cash on Cash Return?

Cash on Cash Return (CoC) is a metric often used in real estate transactions that calculates the cash income earned on the cash invested in a property. Put simply, it measures the annual return the investor made on the property in relation to the amount of mortgage paid during the same year.

It is distinct from Return on Investment (ROI) because it only accounts for the actual cash utilized to purchase the property (Down payment, closing costs, and repairs) rather than the total debt liability.

How to Calculate Cash on Cash Return

The formula for Cash on Cash Return is relatively straightforward:

Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100%

Where:

  • Annual Pre-Tax Cash Flow: (Gross Scheduled Rent + Other Income) – (Vacancy + Operating Expenses + Annual Debt Service).
  • Total Cash Invested: Down Payment + Closing Costs + Rehab Costs + Loan Fees.

Why is this Calculator Important for Investors?

Using a rental property calculator is crucial because it removes emotion from the investment decision. By inputting accurate estimates for rent, maintenance, vacancy, and mortgage rates, you can determine if a property will generate positive cash flow.

Most experienced investors aim for a Cash on Cash return between 8% and 12%, though this varies significantly by market. In highly appreciative markets, investors might accept a lower CoC, whereas in stable cash-flow markets, they may demand higher percentages.

Understanding the Inputs

  • Rehab Costs: Any immediate repairs needed to make the property rentable.
  • Operating Expenses: These should include Property Taxes, Insurance, HOA fees, Property Management fees, and a budget for Maintenance/CapEx.
  • Vacancy Rate: While not a direct input in the simplified fields above, you should factor vacancy into your "Monthly Operating Expenses" or reduce your rental income estimate conservatively.
function calculateROI() { // 1. Get Inputs var price = parseFloat(document.getElementById('purchasePrice').value) || 0; var downPayment = parseFloat(document.getElementById('downPayment').value) || 0; var closingCosts = parseFloat(document.getElementById('closingCosts').value) || 0; var rehabCosts = parseFloat(document.getElementById('rehabCosts').value) || 0; var rent = parseFloat(document.getElementById('monthlyRent').value) || 0; var expenses = parseFloat(document.getElementById('monthlyExpenses').value) || 0; var rate = parseFloat(document.getElementById('interestRate').value) || 0; var term = parseFloat(document.getElementById('loanTerm').value) || 30; // 2. Calculate Mortgage Payment // Loan Amount = Price – Down Payment var loanAmount = price – downPayment; var mortgagePayment = 0; // Monthly Interest Rate var monthlyRate = (rate / 100) / 12; // Total Number of Payments var numPayments = term * 12; if (loanAmount > 0 && monthlyRate > 0) { // Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1] mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1); } else if (loanAmount > 0 && monthlyRate === 0) { mortgagePayment = loanAmount / numPayments; } // 3. Calculate Cash Flow var totalMonthlyExpenses = expenses + mortgagePayment; var monthlyCashFlow = rent – totalMonthlyExpenses; var annualCashFlow = monthlyCashFlow * 12; // 4. Calculate Total Invested var totalInvested = downPayment + closingCosts + rehabCosts; // 5. Calculate CoC Return var cocReturn = 0; if (totalInvested > 0) { cocReturn = (annualCashFlow / totalInvested) * 100; } // 6. Calculate Cap Rate (Optional but useful: (NOI / Price) * 100) // NOI = (Rent – Expenses) * 12. Note: NOI does not include mortgage. var annualNOI = (rent – expenses) * 12; var capRate = 0; if (price > 0) { capRate = (annualNOI / price) * 100; } // 7. Display Results // Format to currency var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', }); document.getElementById('resultCoC').innerHTML = cocReturn.toFixed(2) + "%"; document.getElementById('resultCoC').style.color = cocReturn >= 0 ? "#27ae60" : "#e74c3c"; document.getElementById('resultMonthlyCashFlow').innerHTML = formatter.format(monthlyCashFlow); document.getElementById('resultMonthlyCashFlow').style.color = monthlyCashFlow >= 0 ? "#2c3e50" : "#e74c3c"; document.getElementById('resultTotalInvested').innerHTML = formatter.format(totalInvested); document.getElementById('resultAnnualCashFlow').innerHTML = formatter.format(annualCashFlow); document.getElementById('resultMortgage').innerHTML = formatter.format(mortgagePayment); document.getElementById('resultCapRate').innerHTML = capRate.toFixed(2) + "%"; // Show the results section document.getElementById('resultsSection').style.display = "block"; }

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