function calculateRentalROI() {
// Helper function to safely get float value
function getVal(id) {
var el = document.getElementById(id);
var val = parseFloat(el.value);
return isNaN(val) ? 0 : val;
}
// Get Inputs
var downPayment = getVal("downPayment");
var closingCosts = getVal("closingCosts");
var rehabCosts = getVal("rehabCosts");
var monthlyRent = getVal("monthlyRent");
var monthlyMortgage = getVal("monthlyMortgage");
var monthlyOperating = getVal("monthlyOperating");
// Calculations
var totalInvested = downPayment + closingCosts + rehabCosts;
var totalMonthlyExpenses = monthlyMortgage + monthlyOperating;
var monthlyCashFlow = monthlyRent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
var cocReturn = 0;
if (totalInvested > 0) {
cocReturn = (annualCashFlow / totalInvested) * 100;
}
// Formatting currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
// Display Results
document.getElementById("res-total-invested").innerText = formatter.format(totalInvested);
document.getElementById("res-monthly-cashflow").innerText = formatter.format(monthlyCashFlow);
document.getElementById("res-annual-cashflow").innerText = formatter.format(annualCashFlow);
// Color coding for cashflow
var monthlyEl = document.getElementById("res-monthly-cashflow");
if (monthlyCashFlow >= 0) {
monthlyEl.style.color = "#27ae60";
} else {
monthlyEl.style.color = "#c0392b";
}
document.getElementById("res-coc-return").innerText = cocReturn.toFixed(2) + "%";
// Show results container
document.getElementById("calc-results").style.display = "block";
}
What is a Cash on Cash Return Calculator?
A Cash on Cash Return (CoC) Calculator is an essential tool for real estate investors used to evaluate the profitability of a rental property. Unlike a standard Return on Investment (ROI) calculation that might consider the total value of the asset, CoC specifically measures the annual return the investor made on the actual cash invested.
This metric is particularly useful when leverage (a mortgage) is used to purchase the property. It answers the simple question: "For every dollar I paid out of pocket, how many cents am I getting back this year?"
How is Cash on Cash Return Calculated?
The formula for Cash on Cash Return is straightforward but requires accurate data entry regarding your initial costs and operating budget. The formula used in this calculator is:
Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
Annual Pre-Tax Cash Flow: This is your gross annual rent minus all operating expenses and debt service (mortgage payments). It represents the profit you take home before income taxes.
Total Cash Invested: This is the total amount of liquidity you used to acquire the deal. It includes your down payment, closing costs, and any immediate repair or renovation costs required to get the property rented.
Why Use This Calculator?
Real estate investing involves complex variables. A property might have a high purchase price but excellent cash flow, or a low price but high renovation costs. This calculator helps you:
Compare Properties: Easily compare the efficiency of your money across different potential deals, regardless of their price point.
Factor in Financing: Since CoC accounts for debt service (mortgage), it gives a realistic view of leveraged returns.
Plan Your Budget: By inputting "Other Monthly Expenses" (like vacancy reserves, property management fees, and maintenance), you ensure you aren't overestimating your profit.
What is a Good Cash on Cash Return?
While "good" is subjective and depends on the risk profile of the investment and the current economic climate, many investors use the following benchmarks:
8-12%: Often considered a solid return for residential rental properties in stable markets.
15%+: Considered an excellent return, often found in riskier markets or properties requiring significant "sweat equity" (renovations).
Below 5%: Might be considered low for a pure cash-flow play, unless the property is in a high-appreciation area.
Use the calculator above to adjust your offer price or down payment to see how it affects your return percentage.