Rental Property Cash on Cash Return Calculator
.roi-calculator-widget {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 20px auto;
background: #ffffff;
border: 1px solid #e0e0e0;
border-radius: 8px;
box-shadow: 0 4px 12px rgba(0,0,0,0.05);
overflow: hidden;
}
.roi-calc-header {
background: #2c3e50;
color: #fff;
padding: 20px;
text-align: center;
}
.roi-calc-header h2 {
margin: 0;
font-size: 24px;
}
.roi-calc-body {
padding: 25px;
display: flex;
flex-wrap: wrap;
gap: 30px;
}
.roi-input-section, .roi-result-section {
flex: 1;
min-width: 280px;
}
.roi-input-group {
margin-bottom: 15px;
}
.roi-input-group label {
display: block;
font-weight: 600;
margin-bottom: 5px;
color: #333;
font-size: 14px;
}
.roi-input-wrapper {
position: relative;
display: flex;
align-items: center;
}
.roi-currency-symbol {
position: absolute;
left: 10px;
color: #666;
}
.roi-input-field {
width: 100%;
padding: 10px 10px 10px 25px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
transition: border-color 0.3s;
}
.roi-input-field:focus {
border-color: #3498db;
outline: none;
}
.roi-btn {
width: 100%;
padding: 12px;
background: #27ae60;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
margin-top: 10px;
transition: background 0.2s;
}
.roi-btn:hover {
background: #219150;
}
.roi-result-box {
background: #f8f9fa;
border: 1px solid #dee2e6;
border-radius: 6px;
padding: 20px;
text-align: center;
margin-top: 20px;
}
.roi-result-label {
font-size: 14px;
color: #666;
margin-bottom: 5px;
}
.roi-result-value {
font-size: 28px;
font-weight: 800;
color: #2c3e50;
}
.roi-result-value.highlight {
color: #27ae60;
font-size: 36px;
}
.roi-sub-results {
margin-top: 20px;
border-top: 1px solid #e0e0e0;
padding-top: 15px;
font-size: 14px;
text-align: left;
}
.roi-sub-row {
display: flex;
justify-content: space-between;
margin-bottom: 8px;
}
.roi-article-content {
max-width: 800px;
margin: 40px auto;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, sans-serif;
color: #333;
line-height: 1.6;
padding: 0 20px;
}
.roi-article-content h2 {
color: #2c3e50;
margin-top: 30px;
border-bottom: 2px solid #eee;
padding-bottom: 10px;
}
.roi-article-content h3 {
color: #34495e;
margin-top: 20px;
}
.roi-article-content p {
margin-bottom: 15px;
}
.roi-article-content ul {
margin-bottom: 20px;
padding-left: 20px;
}
.roi-article-content li {
margin-bottom: 8px;
}
@media (max-width: 600px) {
.roi-calc-body {
flex-direction: column;
}
}
Understanding Cash on Cash Return in Real Estate
Cash on Cash Return (CoC) is one of the most critical metrics for real estate investors. Unlike Cap Rate, which measures the potential return of a property assuming you bought it with all cash, the Cash on Cash Return metric measures the return on the actual cash you invested in the deal.
This metric is essential for investors utilizing leverage (mortgages) because it provides a realistic view of how hard your money is working for you.
How to Calculate Cash on Cash Return
The formula for calculating Cash on Cash Return is relatively straightforward, yet powerful:
CoC Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
Key Components Explained
- Annual Cash Flow: This is your gross rental income minus all operating expenses and debt service (mortgage payments). It represents the profit you take home at the end of the year.
- Total Cash Invested: This is the sum of all out-of-pocket money required to acquire the property. This typically includes the down payment, closing costs, and any immediate renovation or repair costs.
Example Calculation
Let's say you purchase a rental property for $200,000.
- Cash Invested: You pay a $40,000 down payment, $5,000 in closing costs, and spend $5,000 on repairs. Your total cash invested is $50,000.
- Income & Expenses: The property rents for $2,000/month. Your mortgage, taxes, insurance, and maintenance total $1,500/month.
- Cash Flow: $2,000 – $1,500 = $500/month, or $6,000/year.
- The Result: ($6,000 / $50,000) = 0.12 or 12% Cash on Cash Return.
What is a Good Cash on Cash Return?
While "good" is subjective and depends on the market and risk level, most residential real estate investors target a Cash on Cash return between 8% and 12%. In highly competitive markets, returns might be lower (4-6%) but offer higher potential for appreciation. Conversely, riskier or lower-income areas might command returns of 15% or higher to offset the increased management difficulty.
function calculateRentalROI() {
// 1. Retrieve Input Values
var downPayment = parseFloat(document.getElementById('downPayment').value) || 0;
var closingCosts = parseFloat(document.getElementById('closingCosts').value) || 0;
var repairCosts = parseFloat(document.getElementById('repairCosts').value) || 0;
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var mortgagePayment = parseFloat(document.getElementById('mortgagePayment').value) || 0;
var otherExpenses = parseFloat(document.getElementById('otherExpenses').value) || 0;
// 2. Perform Calculations
// Total Cash Invested (Denominator)
var totalInvested = downPayment + closingCosts + repairCosts;
// Monthly Cash Flow
var totalMonthlyExpenses = mortgagePayment + otherExpenses;
var monthlyCashFlow = monthlyRent – totalMonthlyExpenses;
// Annual Figures
var annualCashFlow = monthlyCashFlow * 12;
var annualExpenses = totalMonthlyExpenses * 12;
// Cash on Cash Return Calculation
var cocReturn = 0;
if (totalInvested > 0) {
cocReturn = (annualCashFlow / totalInvested) * 100;
} else {
// Handle edge case where investment is 0 (infinite return)
cocReturn = 0;
}
// 3. Update the DOM Results
// Helper function for currency formatting
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
document.getElementById('cocResult').innerText = cocReturn.toFixed(2) + "%";
// Change color based on positive/negative flow
if(cocReturn < 0) {
document.getElementById('cocResult').style.color = "#c0392b";
} else {
document.getElementById('cocResult').style.color = "#27ae60";
}
document.getElementById('totalInvestedResult').innerText = formatter.format(totalInvested);
document.getElementById('monthlyCashFlowResult').innerText = formatter.format(monthlyCashFlow);
document.getElementById('annualCashFlowResult').innerText = formatter.format(annualCashFlow);
document.getElementById('annualExpensesResult').innerText = formatter.format(annualExpenses);
}
// Run calculation initially to populate fields with default values
calculateRentalROI();