Formula
Profit here is cash left in the month:
Monthly profit = rent − operating expenses − mortgage payment
Cash-on-cash return divides a similar cash flow by the cash you invested. This page stops at the monthly dollars.
Assumptions
- Rent, expenses, and the mortgage are typical months.
- Vacancy is already reflected in the rent or expenses you type.
Worked example
$2,000 rent, $400 of expenses, and a $1,200 mortgage leave $400.00 a month.
Input definitions
- Operating expenses
- Repairs, tax, insurance, and other costs except the mortgage. Zero is allowed.
- Mortgage payment
- The monthly loan payment. Zero is allowed if you own the home outright.
Limitations
This is an estimate, not a loan offer, tax filing, or investment advice. The currency control changes the symbol only.
Questions
What if the result is negative?
The rent does not cover the expenses and the mortgage.
Is appreciation included?
No. This is one month of cash, not a sale.