.calc-container {
background-color: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 30px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
margin-bottom: 40px;
}
.calc-title {
text-align: center;
color: #2c3e50;
margin-bottom: 25px;
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;
}
}
.form-group {
margin-bottom: 15px;
}
.form-group label {
display: block;
margin-bottom: 8px;
font-weight: 600;
font-size: 14px;
color: #555;
}
.form-group input {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box; /* Ensures padding doesn't break layout */
}
.form-group input:focus {
border-color: #3498db;
outline: none;
box-shadow: 0 0 5px rgba(52,152,219,0.3);
}
.btn-calc {
width: 100%;
background-color: #27ae60;
color: white;
border: none;
padding: 15px;
font-size: 18px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
transition: background 0.3s;
margin-top: 10px;
}
.btn-calc:hover {
background-color: #219150;
}
.results-box {
background-color: #ffffff;
border: 1px solid #dcdcdc;
border-left: 5px solid #27ae60;
padding: 20px;
margin-top: 25px;
border-radius: 4px;
display: none; /* Hidden by default */
}
.result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
font-size: 16px;
}
.result-row.final {
margin-top: 15px;
padding-top: 15px;
border-top: 1px solid #eee;
font-weight: 800;
font-size: 20px;
color: #2c3e50;
}
.error-msg {
color: #e74c3c;
text-align: center;
margin-top: 10px;
font-weight: bold;
display: none;
}
.article-content h2 {
color: #2c3e50;
margin-top: 30px;
border-bottom: 2px solid #eee;
padding-bottom: 10px;
}
.article-content p {
margin-bottom: 15px;
}
.article-content ul {
margin-bottom: 15px;
padding-left: 20px;
}
.article-content li {
margin-bottom: 8px;
}
function calculateCoC() {
// Get input values
var rentInput = document.getElementById('monthlyRent').value;
var expensesInput = document.getElementById('monthlyExpenses').value;
var downInput = document.getElementById('downPayment').value;
var closingInput = document.getElementById('closingCosts').value;
// DOM elements for results
var resultBox = document.getElementById('resultBox');
var errorDisplay = document.getElementById('errorDisplay');
var resAnnualFlow = document.getElementById('resAnnualFlow');
var resTotalInvested = document.getElementById('resTotalInvested');
var resCoC = document.getElementById('resCoC');
// Reset display
errorDisplay.style.display = 'none';
resultBox.style.display = 'none';
// Parse values
var rent = parseFloat(rentInput);
var expenses = parseFloat(expensesInput);
var downPayment = parseFloat(downInput);
var closingCosts = parseFloat(closingInput);
// Validation
if (isNaN(rent) || isNaN(expenses) || isNaN(downPayment) || isNaN(closingCosts)) {
errorDisplay.innerHTML = "Please enter valid numbers in all fields.";
errorDisplay.style.display = 'block';
return;
}
if (downPayment < 0 || closingCosts < 0 || rent < 0 || expenses 0) {
cocReturn = (annualCashFlow / totalInvested) * 100;
}
// Formatting Output
resAnnualFlow.innerHTML = "$" + annualCashFlow.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
resTotalInvested.innerHTML = "$" + totalInvested.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Color coding the result
if (cocReturn >= 0) {
resCoC.style.color = "#27ae60"; // Green for positive
} else {
resCoC.style.color = "#c0392b"; // Red for negative
}
resCoC.innerHTML = cocReturn.toFixed(2) + "%";
// Show Results
resultBox.style.display = 'block';
}
What is Cash on Cash Return?
Cash on Cash (CoC) Return is widely considered the most important metric in real estate investing. Unlike standard Return on Investment (ROI), which might look at the total value of the asset, CoC Return focuses strictly on the actual cash flow relative to the actual cash invested. It answers the fundamental question: "For every dollar I put into this deal, how many dollars am I getting back this year?"
This metric is particularly useful for leverage-heavy investments (like rental properties with mortgages) because it accounts for debt service within the expenses, giving you a clear picture of your liquidity.
How to Calculate Cash on Cash Return
The formula for Cash on Cash return is relatively straightforward, but requires accuracy in gathering your financial inputs. The calculator above uses the following standard formula:
Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100%
To break this down further:
- Annual Pre-Tax Cash Flow: This is your (Monthly Rent – Monthly Expenses) × 12. Expenses must include mortgage payments (principal and interest), property taxes, insurance, HOA fees, vacancy reserves, and maintenance costs.
- Total Cash Invested: This is not the price of the home. This is the actual cash that left your pocket. It includes your Down Payment, Closing Costs, and any immediate Repair/Rehab costs required to get the property rentable.
What is a Good Cash on Cash Return?
A "good" return varies significantly by market and investment strategy, but here are general benchmarks used by real estate investors:
- 8% – 12%: Generally considered a solid return in stable markets. This beats the average stock market return (adjusted for inflation) while providing a tangible asset.
- 15%+: Considered an excellent return. These deals are often found in lower-cost markets or require significant "sweat equity" (rehab work) to achieve.
- Below 5%: Unless the property is in a high-appreciation area (like San Francisco or NYC) where you are banking on the property value rising, a cash flow return this low is often considered risky for pure buy-and-hold investors.
Why Use This Calculator?
Manual calculations often lead to errors, specifically overlooking closing costs or underestimating monthly expenses. By isolating the Total Cash Invested variable, our calculator ensures you aren't artificially inflating your return percentage by ignoring the upfront costs of acquiring the loan and the property. Use this tool to quickly screen properties before making an offer.