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💵 Mortgage vs Cash Calculator

Should you finance or buy all-cash? Compare CoC return, monthly cash flow, and the opportunity cost of locking up capital in an all-cash purchase.

📍 Property Address (optional)
InputsYour Numbers
Property Details
Purchase Price?
$
Monthly Rent?
$
Financed Purchase
Down Payment %?
%
Interest Rate %?
%
Operating Expenses
Property Tax / mo?
$
Insurance / mo?
$
Maintenance %?
%
Vacancy %?
%
Pro Forma (Alternative Down Payment)
Alternative Down Payment %?
%
Alternative Rate %?
%
As-Is AnalysisCurrent
Enter values to see results
Financed Monthly CF
--
after mortgage
All-Cash Monthly CF
--
no mortgage
Financed CoC
--
on down payment
All-Cash CoC (Yield)
--
NOI / price
Side-by-Side Comparison
Monthly NOI (same for both)--
Financed: Mortgage Payment--
Financed: Monthly CF--
All-Cash: Monthly CF--
Return Comparison
Financed: Cash Invested--
All-Cash: Cash Invested--
Financed CoC Return--
All-Cash CoC (Cap Rate)--
Winner: Higher CoC Return--
Where the Extra Cash Goes
Extra Cash if Financed--
Invested at 8% for 10 yrs--
Cash Opportunity Cost--
Pro FormaAfter Plan
Enter pro forma values
Alt. Down CoC
--
at alt down %
Alt. Down CF
--
monthly
Alt. Rate CoC
--
at alt rate
Alt. Rate CF
--
monthly
Alternative Financing Scenarios
Base (20% down, current rate)--
Alt Down ('+nv("i-pf-down")+'% down)--
All-Cash (100% down)--

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1
Enter the Property and Rent
Same property, same rent -- evaluated two ways. The NOI is identical for both; only the debt service differs.
2
Set Financing Terms
Enter your down payment and expected rate. The mortgage payment is subtracted from NOI to get financed cash flow.
3
Fill in All Expenses
Tax, insurance, maintenance, and vacancy reduce NOI equally for both scenarios. Enter accurately.
4
Compare CoC Returns
Financing almost always shows higher CoC return because you are earning the same NOI on a smaller cash investment (leverage). All-cash has no debt but ties up more capital.
5
Consider Opportunity Cost
The capital not deployed in a cash purchase can be invested elsewhere. The calculator shows what the freed-up capital could grow to in 10 years at 8%.
6
Model Alternative Down Payments
The pro forma column lets you try 30% down or a lower rate. See how CoC and cash flow change as you adjust financing.

The mortgage vs all-cash decision comes down to leverage vs security. Financing amplifies your CoC return because you earn income on the full property value while only putting in a fraction of the price. Cash purchases eliminate debt risk and generate higher monthly cash flow -- but lock up substantial capital.


When financing wins: Property appreciates (you gain on the full value, not just your equity). CoC return on the down payment exceeds what you would earn on the freed-up capital elsewhere. Interest rates are moderate relative to cap rates.


When cash wins: You have no better use for the capital. The market is uncertain and you want maximum cash flow and no default risk. DSCR is tight and you cannot qualify for a mortgage. Cap rates are low (cash-flowing well only works all-cash).

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