Cash-on-cash return shows how hard the cash you put into a rental is working: yearly pre-tax cash flow divided by the total cash invested. Enter the purchase, income, expenses and mortgage to get it in seconds.
Last updated:
Cash invested
$
$
$
$
Upfront work paid in cash.
Yearly income & expenses
$
Gross rent for 12 months.
%
$
Taxes, insurance, repairs, management, HOA…
Financing
$
Blank = calculated from rate and term below.
%
Enter your values to see the result.
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How to use the Cash on Cash Return Calculator
Enter the purchase price, down payment, closing and rehab costs: everything you pay in cash.
Enter the annual rent, a vacancy allowance and yearly operating expenses.
Enter your monthly mortgage payment, or leave it blank and set the rate and term.
Calculate to see the cash-on-cash return, cash flow, NOI and cap rate.
Use the tables to see how rent changes and different down payments affect the return.
Total cash invested = down payment + closing costs + rehab costs
Example: $36,000 rent with 5% vacancy is $34,200. Minus $9,000 of expenses gives NOI of $25,200. A $240,000 loan at 7% for 30 years costs $1,596.73 a month, or $19,160.71 a year, leaving $6,039.29 of cash flow. On $77,500 invested ($60,000 down, $7,500 closing, $10,000 rehab) that is a cash-on-cash return of 7.79%.
Cash-on-cash return = annual pre-tax cash flow ÷ total cash invested × 100. Cash flow is rent after vacancy minus operating expenses minus mortgage payments. Cash invested is the down payment plus closing costs plus upfront repairs.
What is a good cash-on-cash return?
Many rental investors look for roughly 8% to 12%, but what counts as good depends on the market, risk, expected appreciation and current interest rates. A lower return can be acceptable in an area with strong appreciation; a higher one may come with more risk.
How is cash-on-cash different from cap rate?
Cap rate = NOI ÷ purchase price and ignores financing, so it compares properties. Cash-on-cash uses the cash flow after mortgage payments and the cash you actually invested, so it measures your return with your specific financing.
Does cash-on-cash return include appreciation or principal paydown?
No. It only counts cash that reaches your pocket each year before income tax. Equity built through loan paydown and price appreciation are not included, which is why investors also look at total ROI.
What expenses should I include?
Property taxes, insurance, repairs and maintenance, property management, HOA fees, utilities you pay, and reserves for big items like roofs and appliances. Do not include the mortgage payment here; it has its own field.
Why can cash-on-cash return be negative?
If the mortgage and expenses are higher than the rent after vacancy, cash flow is negative, so the return is negative. The rent and down payment tables show what it would take to break even.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.