Analyze your real estate investment potential instantly.
(Taxes, Ins, HOA, Maintenance)
Estimated Cash on Cash Return
0.00%
Total Cash Invested:$0.00
Monthly Mortgage Payment:$0.00
Total Monthly Expenses:$0.00
Monthly Cash Flow:$0.00
Annual Cash Flow:$0.00
function calculateROI() {
// 1. Get 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 expenses = parseFloat(document.getElementById('otherExpenses').value) || 0;
var rate = parseFloat(document.getElementById('interestRate').value) || 0;
var years = parseFloat(document.getElementById('loanTerm').value) || 0;
// 2. Calculate Total Cash Invested
var totalInvested = down + closing + rehab;
// 3. Calculate Mortgage
var loanAmount = price – down;
var monthlyMortgage = 0;
if (loanAmount > 0 && rate > 0 && years > 0) {
var monthlyRate = (rate / 100) / 12;
var numPayments = years * 12;
// Standard amortization formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
monthlyMortgage = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) – 1);
} else if (loanAmount > 0 && rate === 0) {
// Interest free loan edge case
monthlyMortgage = loanAmount / (years * 12);
}
// 4. Calculate Cash Flow
var totalMonthlyExpenses = monthlyMortgage + expenses;
var monthlyCashFlow = rent – totalMonthlyExpenses;
var annualCashFlow = monthlyCashFlow * 12;
// 5. Calculate ROI (Cash on Cash)
var roi = 0;
if (totalInvested > 0) {
roi = (annualCashFlow / totalInvested) * 100;
}
// 6. Display Results
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
document.getElementById('totalInvested').innerText = formatter.format(totalInvested);
document.getElementById('monthlyMortgage').innerText = formatter.format(monthlyMortgage);
document.getElementById('totalMonthlyExp').innerText = formatter.format(totalMonthlyExpenses);
var cfElem = document.getElementById('monthlyCashFlow');
cfElem.innerText = formatter.format(monthlyCashFlow);
cfElem.style.color = monthlyCashFlow >= 0 ? '#27ae60' : '#c0392b';
var annCfElem = document.getElementById('annualCashFlow');
annCfElem.innerText = formatter.format(annualCashFlow);
annCfElem.style.color = annualCashFlow >= 0 ? '#27ae60' : '#c0392b';
var roiElem = document.getElementById('roiResult');
roiElem.innerText = roi.toFixed(2) + '%';
roiElem.style.color = roi >= 0 ? '#27ae60' : '#c0392b';
document.getElementById('resultBox').style.display = 'block';
}
Understanding Cash on Cash Return in Real Estate
When investing in rental properties, determining the profitability of your asset is crucial. The Cash on Cash Return (CoC) is one of the most popular metrics used by real estate investors to evaluate the performance of an income-producing property. Unlike purely appreciation-based metrics, CoC focuses on the cash flow relative to the actual cash invested.
What is Cash on Cash Return?
Cash on Cash Return measures the annual pre-tax cash flow generated by the property divided by the total cash invested. It effectively tells you how hard your money is working for you. For example, if you invest $100,000 in cash to buy a property and it generates $10,000 in positive cash flow per year, your CoC return is 10%.
The formula used in our calculator is:
Cash on Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
Components of the Calculation
Total Cash Invested: This includes your down payment, closing costs (title fees, inspections, origination fees), and any immediate renovation or repair costs required to get the property rent-ready.
Annual Cash Flow: This is calculated by taking your total annual rental income and subtracting all operating expenses and debt service (mortgage payments).
Operating Expenses: These are the recurring costs of owning the property, such as property taxes, landlord insurance, HOA fees, property management fees, and maintenance reserves.
What is a Good Cash on Cash Return?
There is no "one size fits all" answer, as acceptable returns vary by market and investor strategy. However, general benchmarks include:
8-12%: Often considered a solid return in stable markets.
15%+: Considered excellent, though often associated with higher-risk neighborhoods or properties requiring significant "sweat equity" (rehab work).
Below 5%: Might be acceptable in high-appreciation markets (like parts of California or New York), where the primary goal is long-term value growth rather than immediate cash flow.
Why Use a Rental Property Calculator?
Real estate investment involves complex variables. A slight change in interest rates, a miscalculation of repair costs, or underestimating vacancy rates can turn a profitable deal into a liability. By using this Rental Property Cash on Cash Calculator, you can run multiple scenarios—adjusting the purchase price, down payment, or rental income—to find the sweet spot that meets your financial goals before you make an offer.