function calculateCoC() {
// Get Input Values
var price = parseFloat(document.getElementById("purchasePrice").value) || 0;
var downPercent = parseFloat(document.getElementById("downPaymentPercent").value) || 0;
var closing = parseFloat(document.getElementById("closingCosts").value) || 0;
var rehab = parseFloat(document.getElementById("rehabCosts").value) || 0;
var rate = parseFloat(document.getElementById("interestRate").value) || 0;
var term = parseFloat(document.getElementById("loanTerm").value) || 0;
var rent = parseFloat(document.getElementById("monthlyRent").value) || 0;
var expenses = parseFloat(document.getElementById("monthlyExpenses").value) || 0;
// Calculations
var downPaymentAmount = price * (downPercent / 100);
var loanAmount = price – downPaymentAmount;
var totalInvested = downPaymentAmount + closing + rehab;
// Mortgage Calculation
var mortgagePayment = 0;
if (loanAmount > 0 && rate > 0 && term > 0) {
var monthlyRate = (rate / 100) / 12;
var numberOfPayments = term * 12;
// M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
}
// Cash Flow
var totalMonthlyOutflow = mortgagePayment + expenses;
var monthlyCashFlow = rent – totalMonthlyOutflow;
var annualCashFlow = monthlyCashFlow * 12;
// CoC Return
var cocReturn = 0;
if (totalInvested > 0) {
cocReturn = (annualCashFlow / totalInvested) * 100;
}
// Display Results
document.getElementById("resultsArea").style.display = "block";
document.getElementById("displayTotalInvested").innerText = "$" + totalInvested.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("displayMortgage").innerText = "$" + mortgagePayment.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
var monthlyFlowElem = document.getElementById("displayMonthlyCashFlow");
monthlyFlowElem.innerText = "$" + monthlyCashFlow.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
monthlyFlowElem.style.color = monthlyCashFlow >= 0 ? "#27ae60" : "#c0392b";
var annualFlowElem = document.getElementById("displayAnnualCashFlow");
annualFlowElem.innerText = "$" + annualCashFlow.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
annualFlowElem.style.color = annualCashFlow >= 0 ? "#27ae60" : "#c0392b";
var cocElem = document.getElementById("displayCoC");
cocElem.innerText = cocReturn.toFixed(2) + "%";
if (cocReturn >= 8) {
cocElem.className = "roi-highlight";
} else if (cocReturn < 0) {
cocElem.className = "roi-highlight-bad";
} else {
cocElem.className = "";
cocElem.style.color = "#f39c12"; // Warning orange for mediocre returns
cocElem.style.fontWeight = "bold";
cocElem.style.fontSize = "1.2em";
}
}
Understanding Cash on Cash Return in Real Estate
The Cash on Cash (CoC) Return is one of the most critical metrics for real estate investors. Unlike Cap Rate, which measures the potential of the property itself without considering debt service, CoC Return measures the actual return on the cash you personally invested into the deal.
Why Use This Calculator?
Real estate investing involves complex variables. You need to account for your down payment, closing costs, renovation expenses, mortgage interest, and ongoing monthly operating costs. This calculator synthesizes all these inputs to tell you exactly how hard your money is working for you. A positive cash flow is good, but a high Cash on Cash Return ensures that your capital is being utilized efficiently.
The Formula
The formula used in this calculator is straightforward but powerful:
Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100%
Total Cash Invested: Down Payment + Closing Costs + Rehab/Repair Costs
What is a Good Cash on Cash Return?
"Good" is subjective and depends on the market and your investment strategy, but generally:
8-12%: Often considered a solid benchmark for safe, long-term rentals.
15%+: Considered excellent, though often harder to find or requiring more active management (like BRRRR strategy or short-term rentals).
Below 5%: Might be acceptable in high-appreciation markets, but carries higher risk if cash flow turns negative.
Example Scenario
Imagine you purchase a property for $200,000. You put 20% down ($40,000) and pay $5,000 in closing costs. Your total cash invested is $45,000.
After paying the mortgage and all expenses (taxes, insurance, repairs), you clear $300 per month in pure profit. That is $3,600 per year.
Your CoC Return would be: ($3,600 / $45,000) = 0.08 or 8%. This means you are earning an 8% yield on your money, roughly matching the historical average of the stock market, but with the added benefits of property appreciation and tax depreciation.