Cash-on-Cash Return Calculator for Rental Property (Free)

Cash-on-cash return calculator

Cash-on-cash return = annual pre-tax cash flow ÷ the total cash you invested. It shows how hard your down payment is working.

Annual results

Total cash invested–

Loan amount–

Annual debt service–

Net operating income–

Annual cash flow–

Cap rate–

Cash-on-cash return–

Cash-on-cash formula

Cash invested = down payment + closing costs + rehab
Annual cash flow = NOI − annual mortgage payments
Cash-on-cash = annual cash flow ÷ cash invested × 100

Example: $6,000 of annual cash flow on $75,000 invested is an 8% cash-on-cash return.

Cash-on-cash leaves out appreciation, principal paydown and tax effects such as depreciation, so it's a measure of cash yield, not total return.

Related calculators

ROI & IRR calculatorHold-and-sell projection with IRR and equity multiple.BRRRR calculatorCash left in after the refinance.Cap rate calculatorNOI ÷ price, plus value at a target cap rate.

FAQ

What is a good cash-on-cash return?

Many rental investors look for roughly 8–12%, but the right target depends on your alternatives, the risk, and how much appreciation you expect. A lower cash-on-cash return can be reasonable in high-appreciation markets.

Cash-on-cash vs. cap rate?

Cap rate ignores financing (NOI ÷ price). Cash-on-cash includes the mortgage and measures return on the cash you actually put in. With leverage, the two can be quite different.

Is cash-on-cash return the same as ROI?

Not quite. ROI often includes appreciation, principal paydown and tax benefits. Cash-on-cash only counts yearly pre-tax cash flow.