Please fill in all required fields with valid numbers.
Cash on Cash Return (CoC):0.00%
Monthly Cash Flow:$0.00
Net Operating Income (NOI) / Year:$0.00
Cap Rate:0.00%
Monthly Mortgage Payment (P&I):$0.00
function calculateRentalROI() {
// 1. Get Values
var price = parseFloat(document.getElementById('purchasePrice').value);
var downPmt = parseFloat(document.getElementById('downPayment').value);
var closingCosts = parseFloat(document.getElementById('closingCosts').value);
var rate = parseFloat(document.getElementById('interestRate').value);
var term = parseFloat(document.getElementById('loanTerm').value);
var rent = parseFloat(document.getElementById('monthlyRent').value);
var vacancy = parseFloat(document.getElementById('vacancyRate').value);
var tax = parseFloat(document.getElementById('annualTax').value);
var insurance = parseFloat(document.getElementById('annualInsurance').value);
var maint = parseFloat(document.getElementById('monthlyMaintenance').value);
// 2. Validation
var errorDiv = document.getElementById('errorDisplay');
var resultsDiv = document.getElementById('resultsDisplay');
if (isNaN(price) || isNaN(downPmt) || isNaN(rate) || isNaN(term) || isNaN(rent) || isNaN(tax) || isNaN(insurance) || isNaN(maint)) {
errorDiv.style.display = 'block';
resultsDiv.style.display = 'none';
return;
} else {
errorDiv.style.display = 'none';
}
// Handle optional closing costs defaulting to 0 if empty/NaN but allowed
if (isNaN(closingCosts)) closingCosts = 0;
if (isNaN(vacancy)) vacancy = 0;
// 3. Calculation Logic
// Loan Calculations
var loanAmount = price – downPmt;
var monthlyRate = (rate / 100) / 12;
var numberOfPayments = term * 12;
var monthlyMortgage = 0;
if (loanAmount > 0) {
if (rate === 0) {
monthlyMortgage = loanAmount / numberOfPayments;
} else {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
}
}
// Income Calculations
var grossAnnualRent = rent * 12;
var vacancyLoss = grossAnnualRent * (vacancy / 100);
var effectiveGrossIncome = grossAnnualRent – vacancyLoss;
// Expense Calculations
var annualMaintenance = maint * 12;
var operatingExpenses = tax + insurance + annualMaintenance;
// Net Operating Income (NOI)
var noi = effectiveGrossIncome – operatingExpenses;
// Cash Flow
var annualDebtService = monthlyMortgage * 12;
var annualCashFlow = noi – annualDebtService;
var monthlyCashFlow = annualCashFlow / 12;
// Returns
var totalInitialInvestment = downPmt + closingCosts;
var cocReturn = 0;
if (totalInitialInvestment > 0) {
cocReturn = (annualCashFlow / totalInitialInvestment) * 100;
}
var capRate = 0;
if (price > 0) {
capRate = (noi / price) * 100;
}
// 4. Update UI
resultsDiv.style.display = 'block';
// Format Currency Helper
var fmt = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' });
document.getElementById('resCoC').innerText = cocReturn.toFixed(2) + "%";
document.getElementById('resCashFlow').innerText = fmt.format(monthlyCashFlow);
document.getElementById('resNOI').innerText = fmt.format(noi);
document.getElementById('resCapRate').innerText = capRate.toFixed(2) + "%";
document.getElementById('resMortgage').innerText = fmt.format(monthlyMortgage);
}
Understanding Your Rental Property ROI
Investing in real estate is a powerful way to build wealth, but not every property is a good deal. To ensure profitability, investors rely on specific financial metrics. This Cash on Cash Return Calculator allows you to analyze the potential return on your cash investment, distinguishing a mediocre property from a high-performing asset.
What is Cash on Cash Return?
Cash on Cash (CoC) Return is a rate of return ratio that calculates the annual cash income earned on the cash invested in a property. Unlike total Return on Investment (ROI), which might factor in loan paydown and appreciation, CoC focuses strictly on the cash flow relative to the actual cash you put into the deal (down payment plus closing costs).
The formula used in our calculator is:
Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100%
How to Calculate Rental Property Metrics
Our tool breaks down the analysis into several key components:
Net Operating Income (NOI): This is your total income (Rent – Vacancy) minus operating expenses (Taxes, Insurance, Maintenance). It does not include mortgage payments.
Cash Flow: This is the money left over after paying all operating expenses AND the mortgage (debt service). Positive cash flow is essential for a sustainable investment.
Cap Rate: The Capitalization Rate measures the property's natural rate of return assuming it was bought with all cash. It helps compare the property's value independent of financing.
What is a Good Cash on Cash Return?
While "good" is subjective and varies by market, most real estate investors aim for a Cash on Cash return of 8% to 12%. In highly competitive markets, investors might accept 4-6% if they are banking on high appreciation. Conversely, in riskier or lower-cost markets, investors might demand 15% or higher to offset the risk.
Why Use a Calculator?
Manual calculations are prone to error. By using this automated tool, you can quickly adjust variables—like negotiating a lower purchase price or finding cheaper insurance—to see exactly how those changes impact your bottom line. Always run the numbers before making an offer to ensure the property meets your investment goals.