Calculate the ROI of your real estate investment instantly.
(Taxes, Insurance, HOA, Maintenance, Vacancy)
Investment Analysis
Total Initial Investment (Cash Invested):$0.00
Estimated Monthly Mortgage Payment:$0.00
Monthly Cash Flow:$0.00
Annual Cash Flow:$0.00
Cash-on-Cash Return:0.00%
function calculateROI() {
// Get Input Values
var price = parseFloat(document.getElementById('purchasePrice').value);
var downPayment = parseFloat(document.getElementById('downPayment').value);
var closingCosts = parseFloat(document.getElementById('closingCosts').value);
var rate = parseFloat(document.getElementById('interestRate').value);
var years = parseFloat(document.getElementById('loanTerm').value);
var rent = parseFloat(document.getElementById('monthlyRent').value);
var expenses = parseFloat(document.getElementById('monthlyExpenses').value);
// Validation
if (isNaN(price) || isNaN(downPayment) || isNaN(rent) || isNaN(expenses)) {
alert("Please enter valid numbers for Price, Down Payment, Rent, and Expenses.");
return;
}
// Defaults for optional fields
if (isNaN(closingCosts)) closingCosts = 0;
if (isNaN(rate)) rate = 0;
if (isNaN(years)) years = 30;
// Calculations
var loanAmount = price – downPayment;
var mortgagePayment = 0;
// Mortgage Calculation (if loan exists)
if (loanAmount > 0 && rate > 0) {
var monthlyRate = (rate / 100) / 12;
var numberOfPayments = years * 12;
// PMT formula: P * r * (1+r)^n / ((1+r)^n – 1)
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
}
var totalMonthlyExpenses = mortgagePayment + expenses;
var monthlyCashFlow = rent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
var totalInvestment = downPayment + closingCosts;
var cocReturn = 0;
if (totalInvestment > 0) {
cocReturn = (annualCashFlow / totalInvestment) * 100;
}
// Update DOM
document.getElementById('resTotalInvestment').innerText = "$" + totalInvestment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resMortgage').innerText = "$" + mortgagePayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
var cashFlowElem = document.getElementById('resMonthlyCashflow');
cashFlowElem.innerText = "$" + monthlyCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
cashFlowElem.style.color = monthlyCashFlow >= 0 ? "#27ae60" : "#c0392b";
var annualElem = document.getElementById('resAnnualCashflow');
annualElem.innerText = "$" + annualCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
annualElem.style.color = annualCashFlow >= 0 ? "#27ae60" : "#c0392b";
var cocElem = document.getElementById('resCoC');
cocElem.innerText = cocReturn.toFixed(2) + "%";
cocElem.style.color = cocReturn >= 0 ? "#27ae60" : "#c0392b";
// Show Results
document.getElementById('resultsArea').style.display = "block";
}
What is Cash-on-Cash Return?
Cash-on-Cash Return (CoC) is a primary metric used by real estate investors to calculate the annual return on the actual cash invested in a property. Unlike typical Return on Investment (ROI) calculations that might look at the total value of the asset, Cash-on-Cash specifically focuses on the cash flow relative to the cash invested (down payment plus closing and rehab costs).
This metric is crucial for rental property investors because it measures the efficiency of your capital. It helps answer the question: "For every dollar I put into this deal, how much cash am I getting back this year?"
Annual Cash Flow: This is your gross annual rental income minus all operating expenses (taxes, insurance, maintenance, HOA fees) and mortgage debt service.
Total Cash Invested: This includes your down payment, closing costs, loan points, and any immediate repair or renovation costs required to get the property rent-ready.
What is a Good Cash-on-Cash Return?
Target returns vary based on the investor's strategy, the property location, and the current economic climate. However, here are some general benchmarks for residential rental properties:
8% – 12%: Generally considered a solid return for most long-term buy-and-hold investors.
15%+: Considered an excellent return, often found in lower-cost markets or properties requiring significant value-add work (BRRRR strategy).
Below 5%: Might be acceptable in high-appreciation markets (like coastal cities) where the primary goal is long-term equity growth rather than immediate cash flow.
Why Use This Calculator?
Real estate investment involves complex variables. A property might look profitable based on the purchase price alone, but once you factor in the interest rate, taxes, insurance, and maintenance reserves, the cash flow could be negative. By inputting specific numbers for expenses and financing, this tool provides a realistic view of your potential liquid returns, helping you avoid bad deals and identify profitable opportunities.
Factors That Impact Your ROI
Interest Rates: Higher mortgage rates increase your monthly debt service, directly reducing your monthly cash flow and CoC return.
Operating Expenses: accurately estimating vacancy rates (typically 5-10%) and maintenance (typically 1-2% of property value annually) is critical to getting a true calculation.
Leverage: Putting less money down (higher leverage) can infinite-scale your CoC return if the cash flow remains positive, but it also increases risk.