Total Monthly Expenses (Operating + Mortgage):$0.00
Monthly Cash Flow:$0.00
Annual Cash Flow:$0.00
Cash on Cash Return (CoC):0.00%
function calculateCoC() {
// 1. Get Input Values
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value) || 0;
var downPaymentPercent = parseFloat(document.getElementById('downPayment').value) || 0;
var closingCosts = parseFloat(document.getElementById('closingCosts').value) || 0;
var repairCosts = parseFloat(document.getElementById('repairCosts').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 vacancyRate = parseFloat(document.getElementById('vacancyRate').value) || 0;
var annualTax = parseFloat(document.getElementById('annualTax').value) || 0;
var annualInsurance = parseFloat(document.getElementById('annualInsurance').value) || 0;
var propManagementPercent = parseFloat(document.getElementById('propManagement').value) || 0;
var maintenancePercent = parseFloat(document.getElementById('maintenance').value) || 0;
var hoaFees = parseFloat(document.getElementById('hoaFees').value) || 0;
// 2. Calculate Upfront Costs
var downPaymentAmount = purchasePrice * (downPaymentPercent / 100);
var totalInvested = downPaymentAmount + closingCosts + repairCosts;
// 3. Calculate Mortgage
var loanAmount = purchasePrice – downPaymentAmount;
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
var monthlyMortgage = 0;
if (loanAmount > 0 && interestRate > 0) {
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
} else if (loanAmount > 0 && interestRate === 0) {
monthlyMortgage = loanAmount / numberOfPayments;
}
// 4. Calculate Income & Expenses
var vacancyLoss = monthlyRent * (vacancyRate / 100);
var effectiveGrossIncome = monthlyRent – vacancyLoss;
var managementCost = monthlyRent * (propManagementPercent / 100);
var maintenanceCost = monthlyRent * (maintenancePercent / 100);
var monthlyTax = annualTax / 12;
var monthlyInsurance = annualInsurance / 12;
var operatingExpenses = monthlyTax + monthlyInsurance + managementCost + maintenanceCost + hoaFees;
var totalMonthlyExpenses = operatingExpenses + monthlyMortgage;
// 5. Calculate Cash Flow
var monthlyCashFlow = effectiveGrossIncome – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// 6. Calculate Returns
var cocReturn = 0;
if (totalInvested > 0) {
cocReturn = (annualCashFlow / totalInvested) * 100;
}
// 7. Helper for Formatting
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
// 8. Update UI
document.getElementById('res-total-invested').innerHTML = formatter.format(totalInvested);
document.getElementById('res-mortgage').innerHTML = formatter.format(monthlyMortgage);
document.getElementById('res-expenses').innerHTML = formatter.format(totalMonthlyExpenses);
// Handle negative cash flow color
var mCfEl = document.getElementById('res-monthly-cf');
mCfEl.innerHTML = formatter.format(monthlyCashFlow);
mCfEl.style.color = monthlyCashFlow >= 0 ? '#27ae60' : '#c0392b';
var aCfEl = document.getElementById('res-annual-cf');
aCfEl.innerHTML = formatter.format(annualCashFlow);
aCfEl.style.color = annualCashFlow >= 0 ? '#27ae60' : '#c0392b';
var cocEl = document.getElementById('res-coc');
cocEl.innerHTML = cocReturn.toFixed(2) + '%';
cocEl.style.color = cocReturn >= 0 ? '#27ae60' : '#c0392b';
// Show results
document.getElementById('calc-results').style.display = 'block';
}
How to Calculate Cash on Cash Return for Rental Property
Investing in real estate is one of the most reliable ways to build wealth, but not every property is a good investment. To determine if a specific rental property is profitable, investors rely on specific metrics. One of the most critical metrics for real estate investors is the Cash on Cash Return (CoC).
Our Cash on Cash Return Calculator helps you instantly analyze the potential profitability of a rental property by comparing the annual pre-tax cash flow to the total amount of cash invested.
What is Cash on Cash Return?
Cash on Cash Return is a rate of return ratio that calculates the annual cash income earned on the cash you actually invested in the property. Unlike the standard Return on Investment (ROI), which might look at the total value of the asset or future equity, CoC focuses strictly on the liquid cash flow relative to the cash taken out of your pocket.
The Formula:
Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100
Step-by-Step Calculation Guide
To use this calculator effectively, you need to understand the two main components:
1. Total Cash Invested
This is not just your down payment. To get an accurate number, you must sum up all the cash you spent to get the property operational:
Down Payment: Typically 20-25% of the purchase price for investment properties.
Closing Costs: Loan origination fees, title insurance, recording fees, etc.
Repairs/Rehab: Any immediate renovation costs required to make the property rentable.
2. Annual Pre-Tax Cash Flow
This is the money left over after all operating expenses and debt services are paid. It is calculated as:
Debt Service: Your monthly principal and interest mortgage payment.
Why is Cash on Cash Return Important?
This metric is often preferred by investors because it answers the question: "If I put $50,000 into this deal, how much cash will I get back this year?"
For example, if you invest $100,000 cash and the property generates $8,000 in positive cash flow for the year, your Cash on Cash return is 8%. This allows you to compare real estate against other investment vehicles like stocks (dividend yields) or bonds.
What is a "Good" Cash on Cash Return?
While answers vary depending on the market and the investor's goals, here are general benchmarks:
Return Rate
Assessment
8% – 12%
Generally considered a solid return for most buy-and-hold investors.
Above 15%
Excellent return, often found in high-cash-flow markets or undervalued properties needing work.
Below 5%
May be risky unless the property is in a high-appreciation area where you are banking on future equity rather than current cash flow.
Example Calculation
Let's say you buy a property for $200,000.
Down Payment (20%): $40,000
Closing & Repairs: $10,000
Total Cash Invested: $50,000
After paying the mortgage, taxes, insurance, and maintenance, your monthly net cash flow is $350.