Cash-on-Cash Return Calculator

Real Estate Tools

Calculate the cash-on-cash return on your real estate investment, accounting for down payments, mortgage financing, and actual cash invested. Essential for evaluating rental property profitability.

Calculate Cash-on-Cash Return

Enter property and financing details to calculate return on actual cash invested

Property Purchase Price ($)

Down Payment (%)

Closing Costs ($)

Appraisal, title, legal fees, etc.

Annual Net Operating Income ($)

Rental income minus operating expenses

Mortgage Interest Rate (%)

Loan Term (Years)

Cash-on-Cash Formula

Cash-on-Cash Return =

(Annual Cash Flow ÷ Total Cash Invested) × 100

Annual Cash Flow = NOI - Annual Debt Service

Total Cash Invested = Down Payment + Closing Costs

Return Ranges

10%+: Excellent return

8-10%: Good return

6-8%: Moderate return

4-6%: Low return

4%: Very low return

Why It Matters

Accounts for leverage (mortgages)

Real return on cash: Not just gross yield

Compares financed deals: Essential for leveraged investments

Cash flow focus: Measures actual profitability