Cash-on-cash return calculator

Cash-on-cash return is a rental's annual pre-tax cash flow divided by the total cash you invested. If a property leaves you $2,193 a year on $51,000 invested, the return is 4.3%. It shows what your own money earns after loan payments.

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  • Official county data
  • Formulas published

Rental assumptions

Model rent, financing, and operating costs. Results update as you edit.

Property

Purchase & income

Price, rent, and capital required at closing.

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Operating costs

Vacancy, reserves, and ownership expenses.

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Calculated results

Rental performance

Cash flow and return metrics from your assumptions.

Enter purchase price and monthly rent to see cash flow and DSCR.

Enter assumptions

Complete the required inputs to save.

What does the cash-on-cash return calculator do?

This calculator estimates yearly cash flow after operating costs and loan payments, then divides it by your down payment, closing costs and other upfront cash.

Who should use it?

Investors who use financing and want to compare what their cash earns across deals.

What you need to enter

  • Purchase price and down payment
  • Closing costs and upfront repairs
  • Loan rate and term
  • Rent, vacancy and operating costs

How the calculation works

  1. 1Annual rent less vacancy and operating costs gives NOI.
  2. 2NOI less annual loan payments gives cash flow.
  3. 3Cash flow ÷ total cash invested gives cash-on-cash return.

The same formulas run the full workspace and are listed on the formulas page.

Worked example

A $180,000 rental with 25% down at 7.5% over 30 years

NOI
$13,520 a year
Loan payments
$11,327 a year
Cash flow
$2,193 a year
Cash invested
$51,000
Cash-on-cash
4.3%

Rent of $1,800 a month, 5% vacancy and $7,000 of costs give the NOI. Cash invested is $45,000 down plus $6,000 of closing costs.

How to read the results

  • Compare the result with what the same cash could earn elsewhere, at similar risk.
  • It covers cash flow only, and leaves out appreciation, loan paydown and tax effects.

Common mistakes and limits

  • Leaving closing costs or initial repairs out of cash invested.
  • Assuming full occupancy and no maintenance.

Questions people ask

Divide annual pre-tax cash flow by the total cash invested, including down payment, closing costs and upfront repairs.

FlipMetric

Ready to run your own numbers?

Use the calculator above, or open the full workspace. Your first analysis doesn't need an account.

Open the workspaceSee pricing

Estimates only, not financial, legal or tax advice. Read the disclaimer.