Find out what percent return you actually earn on the dollars you put in. Accounts for down payment, closing costs, debt service, and NOI.
Add your down payment, closing costs, and any rehab money. Every dollar you put in before collecting rent counts.
Use our NOI calculator or enter your annual income minus operating expenses (before mortgage).
Total principal and interest payments for the year. Multiply your monthly mortgage P&I by 12.
CoC updates instantly with a rating so you know where the deal stands relative to targets.
This is a pre-tax, pre-depreciation return. It tells you the raw yield on your capital before tax benefits kick in. Depreciation can add 1-3% to your effective after-tax return, which is why many investors accept lower CoC in exchange for the tax shield.
| Return Range | Rating | Context |
|---|---|---|
| Below 4% | Weak | Typical in gateway cities like NYC, LA. Appreciation play, not income. |
| 4% - 8% | Acceptable | Covers most Sun Belt markets. Decent if appreciation is strong. |
| 8% - 12% | Good | Midwest and Southeast sweet spot. Solid income-focused return. |
| 12% - 15% | Strong | Excellent. Usually requires value-add or BRRR execution. |
| 15%+ | BRRR Target | Capital recycling goal. Rare without refinancing equity out of the deal. |
Every dollar spent on repairs before the property is rent-ready is capital at risk. Omitting it inflates your CoC by 20-40% on value-add deals.
Plugging monthly rent times 12 into the numerator and calling it annual cash flow is one of the most common beginner errors. Always subtract operating expenses first.
A deal that penciled at 4% rates may turn negative at 7%. Run the numbers at your actual locked rate, not the rate you wish you had.
Cash on cash ignores equity buildup, appreciation, and tax benefits. A property at 6% CoC with 3% annual appreciation and strong depreciation can outperform a 10% CoC deal in a flat market.
DoorVault pulls actual transaction data from your PM statements and shows you real cash on cash return for every property, updated every month automatically.
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