Cash-on-Cash Return Calculator
Calculate annual return on actual cash invested in property
Calculator
Total Cash Invested
Annual Income & Expenses
Monthly rent x 12
Taxes, insurance, maintenance, vacancy
Principal and interest only (not escrow)
Cash Flow Calculation
Cash-on-Cash Return Guide
How to Use
Calculate annual cash return on your real estate investment
Enter cash invested
Input down payment, closing costs, and renovation costs
Add rental income
Enter gross annual rental income
Input operating expenses
Add property tax, insurance, maintenance, vacancy
Enter debt service
Input monthly mortgage payment (principal and interest)
View return
See cash-on-cash return percentage and cash flow breakdown
Cash-on-Cash Return Formula
CoC Return = (Annual Cash Flow / Total Cash Invested) x 100 Annual Cash Flow = NOI - Annual Debt Service
Pre-tax cash flow divided by your total out-of-pocket investment gives your cash return rate.
Frequently Asked Questions
Cash-on-cash return measures the annual pre-tax cash flow relative to the total cash invested. If you invest $50,000 and receive $5,000 annual cash flow, your cash-on-cash return is 10%. It shows the real return on your actual money invested.
8-12% cash-on-cash return is considered good for rental properties. Excellent deals may achieve 12-20%. Below 4% is generally poor unless appreciation potential is significant. Compare to alternative investments - if stocks yield 10%, your property should beat that.
Cash-on-Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100. Cash invested includes down payment, closing costs, and renovation costs. Annual cash flow is NOI minus debt service (mortgage payments).
It measures your actual return on invested capital, accounting for leverage. A property with 6% cap rate can yield 12% cash-on-cash with a mortgage due to leverage. It helps you compare real estate to other investments and evaluate whether your capital is being used efficiently.