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Cash-on-Cash Return Calculator
by
BusinessCaseGuy.com
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Calculate the Cash-on-Cash Return for real estate or income
property investments. Understand the property’s performance by considering
only cash invested upfront versus the net cash flow in the first year of
operations.
Plug in the information, review your results, and send yourself a copy!
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Instructions: Fill in the 'Yellow' fields, then review the 'Business Case Summary' tab
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Enter the
Costs and Benefits associated with the purchase
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1. What are
your transaction and start-up costs?
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Purchase Price
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% down payment
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Down Payment
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Legal and Regulatory Fees
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Renovation and Repairs
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Other Fees and Expenses
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Add as
required (e.g. Inspection)
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Land Transfer Tax $
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Check your
government guidelines and calculators
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Annual property growth rate
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US &
Canada 20+ year growth ranges from 2-6%
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2. What are
your mortgage details?
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Mortgage Insurance
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*If required,
usually for low down payments.
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Mortgage Amount
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Interest Rate
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Assumes this
average rate over 10-years
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Amortization Terms (years)
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Monthly Mortgage Payment
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3. What is
your estimated rental price and expenses?
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Monthly $
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Rental Estimate
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Property Taxes
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Maintenance / HOA Fee
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Home Insurance
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Repair Allocation
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Property Management Fees
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Occupancy Rate
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Assumes full occupancy, adjust downwards as
required.
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Fee to find a tenant
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If using an Agent, enter the estimated fee. It will
be averaged out over 3 years.
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Alternative Investment / discount rate
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A low risk alternative investment (e.g. Bonds,
Savings, GIC, S&P 500)
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4. Are there
any monthly utilities the Landlord (you) will pay?
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Utilities and content insurance are usually paid by the tenant.
If you are paying any of these costs, then include an estimate where
applicable.
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Monthly $
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Water
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Electricity
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Heat
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Internet
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Content / Tenant Insurance
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Once your inputs are
captured, review your analysis on the 'Business Case Summary' tab.
You can always return here to make updates.
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Cash-on-Cash Return
Summary
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Cash Invested Upfront
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Down Payment
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Start-up Expenses
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Total Cash Invested Upfront
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Cash Returned After 1 Year
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Revenue
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Operating Expenses
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Mortage / Loan Payments
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Net Cash Flow (Year 1)
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Cash-on-Cash Return
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Full details are available in the 'Business
Case Summary' section below.
This calculator provides directional guidance. Decisions should be reviewed
with your financial advisor, accountant, or real estate agent.
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Get your free, personalized copy!
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Enter your e-mail
below and click the green 'Submit' button at the bottom banner.
An e-mail copy will be sent and you will get added to our mailing list.
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Info@BusinessCaseGuy.com | www.BusinessCaseGuy.com
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