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Rental Property Cash on Cash Return Calculator .calculator-wrapper { font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; max-width: 800px; margin: 0 auto; padding: 20px; background: #fff; } .calc-container { background-color: #f8f9fa; border: 1px solid #e9ecef; border-radius: 8px; padding: 30px; box-shadow: 0 4px 6px rgba(0,0,0,0.05); margin-bottom: 40px; } .calc-title { text-align: center; color: #2c3e50; margin-bottom: 25px; font-size: 24px; font-weight: 700; } .input-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 20px; } @media (max-width: 600px) { .input-grid { grid-template-columns: 1fr; } } .input-group { margin-bottom: 15px; } .input-group label { display: block; margin-bottom: 8px; font-weight: 600; color: #495057; font-size: 14px; } .input-group input { width: 100%; padding: 12px; border: 1px solid #ced4da; border-radius: 4px; font-size: 16px; box-sizing: border-box; transition: border-color 0.15s ease-in-out; } .input-group input:focus { border-color: #007bff; outline: 0; } .calc-btn { width: 100%; padding: 15px; background-color: #28a745; color: white; border: none; border-radius: 4px; font-size: 18px; font-weight: bold; cursor: pointer; margin-top: 10px; transition: background-color 0.2s; } .calc-btn:hover { background-color: #218838; } .results-area { margin-top: 30px; background: #fff; border-radius: 6px; padding: 20px; border: 1px solid #dee2e6; display: none; } .result-row { display: flex; justify-content: space-between; padding: 10px 0; border-bottom: 1px solid #eee; } .result-row:last-child { border-bottom: none; } .result-label { color: #6c757d; font-weight: 500; } .result-value { font-weight: 700; color: #2c3e50; } .highlight-result { background-color: #e8f5e9; padding: 15px; border-radius: 4px; margin-bottom: 15px; text-align: center; } .highlight-result .result-label { color: #2e7d32; display: block; margin-bottom: 5px; font-size: 16px; } .highlight-result .result-value { font-size: 32px; color: #2e7d32; } .content-section { color: #333; line-height: 1.6; } .content-section h2 { color: #2c3e50; margin-top: 30px; font-size: 22px; } .content-section h3 { color: #495057; margin-top: 20px; font-size: 18px; } .content-section ul { margin-left: 20px; } .error-msg { color: #dc3545; text-align: center; margin-top: 10px; display: none; }

Rental Property Cash on Cash Return Calculator

Please enter valid positive numbers in all fields.

Cash on Cash Return 0.00%
Monthly Cash Flow $0.00
Monthly Net Operating Income (NOI) $0.00
Est. Monthly Mortgage Payment $0.00
Total Cash Invested $0.00
Cap Rate 0.00%

Understanding Cash on Cash Return

Cash on Cash (CoC) Return is one of the most important metrics for real estate investors. Unlike Return on Investment (ROI), which might factor in equity paydown and appreciation, Cash on Cash Return measures the annual cash income earned on the cash actually invested in the property. It answers the fundamental question: "For every dollar I put into this deal, how many cents do I get back in cash flow this year?"

The Formula

The calculation uses the following formula:

Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100%

Where:

  • Annual Pre-Tax Cash Flow = (Gross Rental Income – Operating Expenses – Mortgage Payments) × 12
  • Total Cash Invested = Down Payment + Closing Costs + Rehab/Repair Costs

What is a Good Cash on Cash Return?

While target returns vary by market and strategy, here are general benchmarks for rental properties:

  • 8% – 12%: Generally considered a solid return in most stable markets.
  • 15%+: Often achievable in lower-cost markets or with aggressive strategies like BRRRR or short-term rentals.
  • Below 5%: Might be acceptable in high-appreciation markets (like coastal cities) where the long-term play is value growth rather than immediate cash flow.

Example Calculation

Imagine you buy a rental property for $200,000.

  • You put 20% down ($40,000) and pay $5,000 in closing costs. Total Cash Invested = $45,000.
  • Your monthly rent is $2,000.
  • Your operating expenses (taxes, insurance, maintenance) are $600/month.
  • Your mortgage payment is $1,000/month.
  • Your Monthly Cash Flow = $2,000 – $600 – $1,000 = $400.
  • Your Annual Cash Flow = $400 × 12 = $4,800.

CoC Return = ($4,800 / $45,000) = 10.66%.

Use the calculator above to run scenarios on prospective deals to ensure they meet your investment criteria before making an offer.

function calculateCoC() { // 1. Get Input Values var price = parseFloat(document.getElementById('prop_price').value); var downPayment = parseFloat(document.getElementById('prop_down').value); var closingCosts = parseFloat(document.getElementById('prop_closing').value); var rate = parseFloat(document.getElementById('loan_rate').value); var term = parseFloat(document.getElementById('loan_term').value); var rent = parseFloat(document.getElementById('monthly_rent').value); var expenses = parseFloat(document.getElementById('monthly_exp').value); // 2. Element references for Output var resDiv = document.getElementById('results_display'); var errDiv = document.getElementById('error_message'); // 3. Validation if (isNaN(price) || isNaN(downPayment) || isNaN(rent) || isNaN(expenses)) { errDiv.style.display = "block"; resDiv.style.display = "none"; return; } // Handle optional fields nicely (default to 0 if empty/NaN, but validation above catches basic NaNs. // We will stricter checks here if needed, but basic NaN check is good.) if (isNaN(closingCosts)) closingCosts = 0; if (isNaN(rate)) rate = 0; if (isNaN(term)) term = 30; errDiv.style.display = "none"; // 4. Calculations // Loan Amount var loanAmount = price – downPayment; // Mortgage Calculation var monthlyMortgage = 0; if (loanAmount > 0 && rate > 0 && term > 0) { var monthlyRate = (rate / 100) / 12; var numPayments = term * 12; // Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1] monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1); } // Net Operating Income (NOI) var monthlyNOI = rent – expenses; var annualNOI = monthlyNOI * 12; // Cash Flow var monthlyCashFlow = monthlyNOI – monthlyMortgage; var annualCashFlow = monthlyCashFlow * 12; // Total Cash Invested var totalInvested = downPayment + closingCosts; // Cash on Cash Return var cocReturn = 0; if (totalInvested > 0) { cocReturn = (annualCashFlow / totalInvested) * 100; } // Cap Rate (NOI / Price) var capRate = 0; if (price > 0) { capRate = (annualNOI / price) * 100; } // 5. Display Results resDiv.style.display = "block"; document.getElementById('res_coc').innerText = cocReturn.toFixed(2) + "%"; document.getElementById('res_cashflow').innerText = "$" + formatMoney(monthlyCashFlow); document.getElementById('res_noi').innerText = "$" + formatMoney(monthlyNOI); document.getElementById('res_mortgage').innerText = "$" + formatMoney(monthlyMortgage); document.getElementById('res_invested').innerText = "$" + formatMoney(totalInvested); document.getElementById('res_cap').innerText = capRate.toFixed(2) + "%"; // Color coding for negative flow if(monthlyCashFlow < 0) { document.getElementById('res_cashflow').style.color = "#dc3545"; } else { document.getElementById('res_cashflow').style.color = "#2c3e50"; } } function formatMoney(num) { return num.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2}); }

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