Please enter valid numerical values for Price and Rent.
Investment Analysis
Total Cash Invested (Cash Needed):$0.00
Monthly Principal & Interest:$0.00
Total Monthly Expenses:$0.00
Monthly Cash Flow:$0.00
Annual Cash Flow:$0.00
Net Operating Income (NOI):$0.00
Cash on Cash Return:0.00%
Cap Rate:0.00%
Understanding Cash on Cash Return
In real estate investing, the Cash on Cash (CoC) Return is one of the most critical metrics used to determine the profitability of an income-producing property. Unlike purely speculative metrics that rely on future appreciation, CoC measures the actual annual cash flow generated by the property relative to the amount of initial cash you invested.
The Formula:
Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
This calculator helps investors quickly analyze rental properties to ensure they meet their investment criteria before making an offer.
How to Use This Calculator
To get the most accurate results, you need to input specific data regarding the purchase and operation of the property:
Purchase Information: Enter the list price, estimated closing costs (usually 2-5% of price), and any immediate repair or rehab costs needed to make the property rent-ready.
Loan Details: Input your down payment percentage and current mortgage interest rates. This determines your leverage and debt service.
Income & Expenses: Be realistic with your rental income estimates. Don't forget to account for "hidden" costs like vacancy (periods without a tenant), maintenance (wear and tear), and property management fees if you aren't self-managing.
Interpreting Your Results
What is a "Good" Cash on Cash Return?
While targets vary by investor and market, here are general benchmarks:
8-12%: Generally considered a solid return for most long-term residential rentals.
15%+: Excellent returns, often found in lower-cost markets or properties requiring significant rehabilitation (BRRRR strategy).
Below 5%: May be acceptable in high-appreciation markets (like coastal cities), but represents a higher risk if the market cools.
Cash Flow vs. Net Operating Income (NOI)
NOI is your profitability before paying the mortgage. It helps evaluate the property's raw performance. Cash Flow is what lands in your pocket after the mortgage is paid. This calculator provides both figures to give you a complete picture of the asset's performance.
Frequently Asked Questions
Why include a vacancy rate?
Even the best properties aren't occupied 365 days a year forever. A standard vacancy rate of 5% (roughly 18 days per year) or 8% (one month per year) safeguards your calculations against turnover periods.
Does this calculate tax benefits?
This calculator focuses on pre-tax cash flow. Real estate offers significant tax advantages like depreciation, which can boost your effective return, but those should be calculated with a CPA based on your specific tax bracket.
function calculateROI() {
// 1. Get Input Values
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value);
var closingCosts = parseFloat(document.getElementById('closingCosts').value);
var rehabCosts = parseFloat(document.getElementById('rehabCosts').value);
var downPaymentPercent = parseFloat(document.getElementById('downPaymentPercent').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var loanTermYears = parseFloat(document.getElementById('loanTerm').value);
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value);
var annualTaxes = parseFloat(document.getElementById('annualTaxes').value);
var annualInsurance = parseFloat(document.getElementById('annualInsurance').value);
var monthlyHOA = parseFloat(document.getElementById('monthlyHOA').value);
var vacancyRate = parseFloat(document.getElementById('vacancyRate').value);
var maintenanceRate = parseFloat(document.getElementById('maintenanceRate').value);
var managementFee = parseFloat(document.getElementById('managementFee').value);
// Error Handling
if (isNaN(purchasePrice) || isNaN(monthlyRent) || purchasePrice = 0) {
document.getElementById('resMonthlyCashFlow').style.color = "#27ae60";
} else {
document.getElementById('resMonthlyCashFlow').style.color = "#c0392b";
}
document.getElementById('resAnnualCashFlow').innerHTML = formatCurrency(annualCashFlow);
document.getElementById('resNOI').innerHTML = formatCurrency(annualNOI);
document.getElementById('resCoC').innerHTML = cashOnCashReturn.toFixed(2) + '%';
// Color code CoC
if (cashOnCashReturn >= 0) {
document.getElementById('resCoC').style.color = "#27ae60";
} else {
document.getElementById('resCoC').style.color = "#c0392b";
}
document.getElementById('resCapRate').innerHTML = capRate.toFixed(2) + '%';
}