Analyze your real estate deal's potential profitability.
Purchase Info
Financing Details
Rental Income
Monthly Expenses
Cash on Cash Return (CoC)
0.00%
Monthly Cash Flow
$0.00
NOI (Monthly)
$0.00
Total Cash Invested
$0.00
Monthly Mortgage P&I
$0.00
Total Monthly Expenses
$0.00
function calculateROI() {
// 1. Get Inputs
var price = parseFloat(document.getElementById('purchasePrice').value) || 0;
var downPercent = parseFloat(document.getElementById('downPaymentPercent').value) || 0;
var closingCosts = parseFloat(document.getElementById('closingCosts').value) || 0;
var rehabCosts = parseFloat(document.getElementById('rehabCosts').value) || 0;
var interestRate = parseFloat(document.getElementById('interestRate').value) || 0;
var loanTerm = parseFloat(document.getElementById('loanTerm').value) || 0;
var monthlyRent = parseFloat(document.getElementById('monthlyRent').value) || 0;
var otherIncome = parseFloat(document.getElementById('otherIncome').value) || 0;
var vacancyRate = parseFloat(document.getElementById('vacancyRate').value) || 0;
var yearlyTax = parseFloat(document.getElementById('propertyTax').value) || 0;
var yearlyIns = parseFloat(document.getElementById('insurance').value) || 0;
var managementPercent = parseFloat(document.getElementById('managementFee').value) || 0;
var maintenancePercent = parseFloat(document.getElementById('maintenance').value) || 0;
// 2. Calculations
// Investment Costs
var downPayment = price * (downPercent / 100);
var loanAmount = price – downPayment;
var totalCashInvested = downPayment + closingCosts + rehabCosts;
// Mortgage Payment (Standard Formula)
var monthlyRate = (interestRate / 100) / 12;
var numPayments = loanTerm * 12;
var mortgagePayment = 0;
if (interestRate > 0 && loanTerm > 0) {
mortgagePayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
} else if (loanTerm > 0) {
mortgagePayment = loanAmount / numPayments;
}
// Income Calculations
var totalGrossIncome = monthlyRent + otherIncome;
var vacancyLoss = totalGrossIncome * (vacancyRate / 100);
var effectiveGrossIncome = totalGrossIncome – vacancyLoss;
// Expense Calculations
var monthlyTax = yearlyTax / 12;
var monthlyIns = yearlyIns / 12;
var managementCost = effectiveGrossIncome * (managementPercent / 100);
var maintenanceCost = effectiveGrossIncome * (maintenancePercent / 100);
// Operating Expenses (excluding mortgage)
var totalOperatingExpenses = monthlyTax + monthlyIns + managementCost + maintenanceCost;
// Net Operating Income (NOI)
var noi = effectiveGrossIncome – totalOperatingExpenses;
// Cash Flow
var monthlyCashFlow = noi – mortgagePayment;
var annualCashFlow = monthlyCashFlow * 12;
// Cash on Cash Return
var cocReturn = 0;
if (totalCashInvested > 0) {
cocReturn = (annualCashFlow / totalCashInvested) * 100;
}
// 3. Update UI
document.getElementById('resultsArea').style.display = 'block';
// Helper for formatting currency
var fmtMoney = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' });
// Set Values
document.getElementById('cocResult').innerText = cocReturn.toFixed(2) + '%';
document.getElementById('monthlyCashFlow').innerText = fmtMoney.format(monthlyCashFlow);
document.getElementById('noiResult').innerText = fmtMoney.format(noi);
document.getElementById('totalInvested').innerText = fmtMoney.format(totalCashInvested);
document.getElementById('mortgageResult').innerText = fmtMoney.format(mortgagePayment);
document.getElementById('totalExpensesResult').innerText = fmtMoney.format(totalOperatingExpenses + mortgagePayment + vacancyLoss); // Actual outflow + lost income
// Styling for negative cash flow
var cfElement = document.getElementById('monthlyCashFlow');
if (monthlyCashFlow < 0) {
cfElement.classList.add('negative');
} else {
cfElement.classList.remove('negative');
}
var cocElement = document.getElementById('cocResult');
if (cocReturn < 0) {
cocElement.classList.add('negative');
} else {
cocElement.classList.remove('negative');
}
}
Why Use a Rental Property Cash on Cash Return Calculator?
Real estate investing is a numbers game. Whether you are analyzing your first rental property or expanding a portfolio of multi-family units, understanding the return on your specific cash investment is crucial. This Cash on Cash (CoC) Return Calculator is designed to cut through the noise and provide the most vital metric for investors: how hard is your money working for you?
What is Cash on Cash Return?
Cash on Cash Return is a rate of return ratio that calculates the cash income earned on the cash invested in a property. Unlike ROI (Return on Investment), which might look at the total loan paydown and appreciation, CoC focuses strictly on the liquid cash flow relative to the cash you actually put into the deal.
The formula is simple but powerful:
CoC Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100%
Key Inputs Explained
Purchase Price & Down Payment: These determine your loan amount. A higher down payment reduces your mortgage but increases your initial cash outlay, often lowering your CoC percentage even if cash flow increases.
Closing & Rehab Costs: Many beginners forget to include closing costs (usually 2-5% of purchase price) and immediate repair costs (Rehab). These are part of your "Total Cash Invested" denominator.
Vacancy Rate: No property is occupied 100% of the time. A standard conservative estimate is 5-8% to account for turnover periods.
Operating Expenses: This includes property taxes, insurance, property management fees (typically 8-10% of rent), and maintenance reserves (CapEx). Underestimating these is the #1 reason investors lose money.
Interpreting Your Results
What constitutes a "good" return varies by market and strategy:
8-12%: Often considered a solid benchmark for safe, long-term buy-and-hold investments.
15%+: Excellent returns, often found in riskier markets or properties requiring significant "sweat equity" (rehab work).
Negative Return: If your calculation shows a negative percentage, the property costs more to hold than it generates in income. Unless you are banking purely on massive appreciation (speculation), this is generally a deal to avoid.
Use this calculator to adjust your offer price. If the current asking price yields a 3% return but your target is 10%, lower the Purchase Price input until the CoC hits your target—that is your maximum offer price.