Cash-on-Cash Return Calculator
Measure the pre-tax return on the cash you actually invested in a rental. Enter your down payment and costs, rent, operating expenses and mortgage payments to get annual cash flow and cash-on-cash return.
Written and reviewed by the CalcBundle editorial team. Transparent formulas · results are estimates, not advice.
Cash-on-cash return
Enter your cash invested (down payment, closing and renovation costs).
What is a cash-on-cash return calculator?
A cash-on-cash return calculator shows how hard your invested cash is working each year. Unlike cap rate, it accounts for your mortgage, so it reflects the reality of a leveraged purchase.
How to calculate cash-on-cash return
- Annual cash flow = adjusted rent − operating expenses − debt service
- Cash invested = down payment + closing + renovation costs
- Cash-on-cash = annual cash flow ÷ cash invested × 100
Why financing matters
Because it uses only your invested cash, leverage changes the answer: a larger mortgage lowers your cash flow but also your cash invested. Compare it with the unleveraged cap rate, check lender coverage with the DSCR calculator, and see the whole deal with the rental property ROI calculator.
Frequently asked questions
What is cash-on-cash return?
Cash-on-cash return is your annual pre-tax cash flow divided by the total cash you invested, shown as a percentage. It measures the return on the money you actually put in, including the effect of financing.
What counts as cash invested?
Typically your down payment plus closing costs and any upfront renovation or setup costs — the out-of-pocket cash needed to acquire and ready the property.
What is a good cash-on-cash return?
Many investors aim for 8–12%, but expectations vary by market, strategy and risk. Compare against alternative investments and other deals in your area.
How is it different from cap rate?
Cap rate ignores financing and uses the full property value; cash-on-cash return reflects your mortgage payments and only the cash you invested, so leverage can push it above or below the cap rate.
Related calculators
Cap Rate
Compute capitalization rate from NOI and value, or solve for value or NOI.
Rental Property ROI
Estimate cash flow, cash-on-cash and total ROI for a financed rental, including sale.
Property Cash Flow
Estimate monthly and annual rental cash flow after expenses and mortgage.
DSCR
Work out debt service coverage ratio, or the debt supportable at a target DSCR.
Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Results are pre-tax estimates based on your inputs and do not account for income taxes, depreciation or changing rents and costs.