Cash on Cash Return Calculator for Real Estate Investors
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Cash on Cash Return Calculator
CASH ON CASH RETURN
0.00%
Total Cash Invested:
$0.00
Monthly Mortgage Payment:
$0.00
Monthly Cash Flow:
$0.00
Annual Cash Flow:
$0.00
What is Cash on Cash Return?
Cash on Cash (CoC) Return is one of the most important metrics in real estate investing. Unlike Return on Investment (ROI), which might factor in mortgage paydown and property appreciation, CoC specifically measures the annual pre-tax cash flow generated by the property relative to the actual cash invested.
It essentially answers the question: "For every dollar I put into this deal, how many cents do I get back in cold, hard cash this year?"
The Formula
The calculation is straightforward but requires accurate inputs:
Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
- Annual Cash Flow: (Monthly Rent – Mortgage Payment – Operating Expenses) × 12
- Total Cash Invested: Down Payment + Closing Costs + Rehab Costs + Loan Fees
Why Use This Calculator?
Real estate investors use this metric to compare investment opportunities. For example, if you have $100,000 to invest, you might choose between a stock paying a 4% dividend or a rental property offering an 8% cash on cash return. This calculator helps you parse the specific expenses of a property—including vacancies, repairs, and debt service—to find the true yield on your cash.
Example Scenario
Imagine you purchase a property for $200,000. You put $40,000 down (20%) and spend $5,000 on closing costs and $5,000 on immediate repairs. Your total cash invested is $50,000.
After paying the mortgage and all expenses (taxes, insurance, management), the property nets you $300 per month in positive cash flow.
- Annual Cash Flow: $300 × 12 = $3,600
- Total Cash Invested: $50,000
- CoC Return: ($3,600 / $50,000) = 0.072 or 7.2%
This means your money is growing at a rate of 7.2% annually, purely from rental income, excluding any tax benefits or equity gains.
function calculateCoC() {
// 1. Get Input Values
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 interestRate = parseFloat(document.getElementById('interestRate').value) || 0;
var loanTerm = parseFloat(document.getElementById('loanTerm').value) || 0;
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var otherExpenses = parseFloat(document.getElementById('monthlyExpenses').value) || 0;
// 2. Validate essential inputs to prevent bad math
if (price 0 && interestRate > 0 && loanTerm > 0) {
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = loanTerm * 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);
} else if (loanAmount > 0 && interestRate === 0) {
// 0% interest loan logic
monthlyMortgage = loanAmount / (loanTerm * 12);
}
// 4. Calculate Cash Flow
var totalMonthlyExpenses = monthlyMortgage + otherExpenses;
var monthlyCashFlow = monthlyRent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// 5. Calculate Total Cash Invested (The Denominator)
var totalCashInvested = downPayment + closingCosts + rehabCosts;
// 6. Calculate CoC Return
var cocReturn = 0;
if (totalCashInvested > 0) {
cocReturn = (annualCashFlow / totalCashInvested) * 100;
}
// 7. Display Results
// Helper for currency formatting
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
document.getElementById('cocResult').innerText = cocReturn.toFixed(2) + "%";
document.getElementById('cocResult').style.color = cocReturn >= 0 ? '#2b6cb0' : '#e53e3e';
document.getElementById('totalInvestedResult').innerText = formatter.format(totalCashInvested);
document.getElementById('mortgageResult').innerText = formatter.format(monthlyMortgage);
document.getElementById('monthlyCashFlowResult').innerText = formatter.format(monthlyCashFlow);
document.getElementById('monthlyCashFlowResult').style.color = monthlyCashFlow >= 0 ? '#38a169' : '#e53e3e';
document.getElementById('annualCashFlowResult').innerText = formatter.format(annualCashFlow);
document.getElementById('annualCashFlowResult').style.color = annualCashFlow >= 0 ? '#38a169' : '#e53e3e';
// Show the results container
document.getElementById('resultsArea').style.display = 'block';
}