Purchase Information
Rental Income
Operating Expenses
Financial Analysis
Cash on Cash Return (Annual):
0.00%
Monthly Cash Flow:
$0.00
Annual Cash Flow:
$0.00
Monthly Mortgage (P&I):
$0.00
Total Monthly Expenses (inc. Debt):
$0.00
Net Operating Income (NOI) Monthly:
$0.00
Total Cash Invested:
$0.00
What is Cash on Cash Return?
Cash on Cash (CoC) Return is a fundamental metric used in real estate investing to measure the annual return on the actual cash invested in a property. Unlike the Return on Investment (ROI) which might consider total equity, CoC focuses purely on the cash flow generated relative to the initial cash outlay.
This metric is crucial for investors using leverage (mortgages) because it provides a true picture of how hard your specific dollars are working for you, separating the performance of the asset from the financing structure.
How to Use This Rental Property Calculator
This calculator is designed to provide a comprehensive analysis of a potential rental property purchase. Here is how to input your data:
- Purchase Information: Enter the price of the property, your down payment amount, estimated closing costs (typically 2-5% of price), and your loan details.
- Rental Income: Input the expected gross monthly rent. If the property has coin-operated laundry or vending machines, add that to "Other Income".
- Operating Expenses: Be realistic here. Include taxes, insurance, HOA fees, and set aside a budget for maintenance and Capital Expenditures (CapEx) to replace big items like roofs or HVAC systems in the future.
Understanding the Results
Cash on Cash Return
The percentage shown is your annual yield. For example, a 10% CoC return means that for every $100 you invested, you are getting $10 back in profit each year.
Monthly Cash Flow
This is your "take-home" profit after paying the mortgage and all operating expenses. Positive cash flow is essential for a sustainable investment strategy.
Net Operating Income (NOI)
NOI is the profitability of the property before debt service is paid. It is calculated by subtracting all operating expenses from total income, excluding the mortgage payment. This number helps compare properties regardless of how they are financed.
What is a Good Cash on Cash Return?
A "good" return varies by market and investor strategy. generally:
- 8-12%: Often considered a solid benchmark for residential rental properties.
- 15%+: Considered excellent, though often requires finding undervalued properties or doing value-add renovations.
- Below 5%: Might be acceptable in high-appreciation markets where the long-term equity growth is the primary goal rather than immediate cash flow.