.calculator-wrapper {
max-width: 800px;
margin: 0 auto;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
color: #333;
}
.calc-container {
background-color: #f8f9fa;
padding: 30px;
border-radius: 8px;
box-shadow: 0 4px 6px rgba(0,0,0,0.1);
margin-bottom: 40px;
border: 1px solid #e9ecef;
}
.calc-title {
text-align: center;
margin-bottom: 25px;
color: #2c3e50;
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;
font-size: 14px;
color: #495057;
}
.input-group input {
width: 100%;
padding: 10px 12px;
border: 1px solid #ced4da;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
transition: border-color 0.15s;
}
.input-group input:focus {
border-color: #4dabf7;
outline: none;
box-shadow: 0 0 0 3px rgba(77, 171, 247, 0.1);
}
.calc-btn {
width: 100%;
padding: 15px;
background-color: #228be6;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: 600;
cursor: pointer;
transition: background-color 0.2s;
margin-top: 10px;
}
.calc-btn:hover {
background-color: #1c7ed6;
}
.results-box {
margin-top: 25px;
padding: 20px;
background-color: #fff;
border-radius: 6px;
border-left: 5px solid #228be6;
display: none;
}
.result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
font-size: 16px;
border-bottom: 1px solid #f1f3f5;
padding-bottom: 5px;
}
.result-row:last-child {
border-bottom: none;
margin-bottom: 0;
padding-bottom: 0;
}
.result-row.highlight {
font-weight: 700;
color: #228be6;
font-size: 20px;
margin-top: 15px;
border-top: 2px solid #e9ecef;
padding-top: 10px;
}
.article-content {
line-height: 1.6;
margin-top: 40px;
}
.article-content h2 {
margin-top: 30px;
color: #2c3e50;
}
.article-content h3 {
margin-top: 20px;
color: #34495e;
}
.article-content ul {
padding-left: 20px;
}
.article-content li {
margin-bottom: 10px;
}
function calculateCoC() {
// Get Input Values
var price = parseFloat(document.getElementById('purchasePrice').value) || 0;
var down = parseFloat(document.getElementById('downPayment').value) || 0;
var closing = parseFloat(document.getElementById('closingCosts').value) || 0;
var rehab = parseFloat(document.getElementById('rehabCosts').value) || 0;
var rent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var mortgage = parseFloat(document.getElementById('monthlyMortgage').value) || 0;
var expenses = parseFloat(document.getElementById('monthlyExpenses').value) || 0;
// Validation
if (down <= 0 && closing <= 0 && rehab 0) {
cocReturn = (annualCashFlow / totalCashInvested) * 100;
}
// Formatting Results
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
document.getElementById('resTotalInvested').innerHTML = formatter.format(totalCashInvested);
document.getElementById('resMonthlyFlow').innerHTML = formatter.format(monthlyCashFlow);
document.getElementById('resAnnualFlow').innerHTML = formatter.format(annualCashFlow);
var cocElement = document.getElementById('resCoC');
cocElement.innerHTML = cocReturn.toFixed(2) + "%";
// Color coding the result
if (cocReturn >= 12) {
cocElement.style.color = "#27ae60"; // Green for good
} else if (cocReturn >= 6) {
cocElement.style.color = "#f39c12"; // Orange for moderate
} else {
cocElement.style.color = "#c0392b"; // Red for low
}
// Show Results
document.getElementById('results').style.display = "block";
}
Understanding Cash on Cash Return in Real Estate
Cash on Cash (CoC) Return is one of the most critical metrics for real estate investors. Unlike generic Return on Investment (ROI) calculations that might account for loan paydown or appreciation, Cash on Cash Return measures the cash income earned on the cash invested in a property. It effectively tells you how hard your actual dollars are working for you.
How is Cash on Cash Return Calculated?
The formula used in our calculator is straightforward but powerful:
Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100%
- Annual Pre-Tax Cash Flow: This is your gross rent minus all operating expenses (taxes, insurance, HOA fees, maintenance) and debt service (mortgage payments).
- Total Cash Invested: This is the total amount of liquidity you used to acquire the property. It includes your down payment, closing costs, and any immediate repair or rehabilitation costs.
Why This Metric Matters
Investors use CoC return to compare the profitability of a rental property against other potential investments. For example, if the stock market historically returns 7-8%, a rental property offering a 4% CoC return might not be worth the effort and risk of being a landlord. However, a property with a 15% CoC return provides significant monthly income relative to the capital deployed.
What is a "Good" Cash on Cash Return?
While target returns vary by investor strategy and market location, general guidelines suggest:
- 8-12%: Generally considered a solid, safe return in many stable markets.
- 15%+: Considered excellent, though often found in riskier neighborhoods or properties requiring significant "sweat equity" and renovation.
- Below 5%: Usually considered poor for a pure cash-flow play, though investors might accept this in high-appreciation markets (like coastal cities) where the long-term value growth is the primary goal.
Example Calculation
Imagine you purchase a single-family home for $200,000. You put 20% down ($40,000), pay $5,000 in closing costs, and spend $5,000 on new paint and carpets. Your Total Cash Invested is $50,000.
The house rents for $2,000/month. After paying the mortgage ($1,000), taxes, insurance, and setting aside money for repairs ($500), your monthly profit is $500. This results in an Annual Cash Flow of $6,000 ($500 x 12).
Your CoC Return would be: ($6,000 / $50,000) = 12%. This means you are earning a 12% yield on your money annually, excluding any benefits from tax depreciation or property value increases.