Cash on Cash Return Calculator
Measure the annual return on the cash you actually invest in a rental property. Enter your numbers below to instantly see cash flow, cash-on-cash return, cap rate, and projected total return at sale.
How It Works
This calculator uses standard real estate investment formulas to evaluate the cash-on-cash return of a rental property.
Cash-on-Cash Return
Cash-on-cash return measures the annual pre-tax cash flow relative to the total cash actually invested. It answers the question: how much cash income am I getting back per dollar invested? Maintenance is charged on gross rent, while the property management fee is charged on the collected (occupied) rent.
NOI & Cap Rate
Net Operating Income is the property's income after operating expenses but before financing. Cap rate measures the unleveraged return on the property value.
Cap Rate = NOI / Purchase Price × 100
Cash Invested
Your total cash investment is the sum of the down payment, closing costs, and any renovation costs — everything you put in out of pocket before the property starts generating income.
Total Return at Sale
Projects your total return over a 5-year hold, including equity gain (appreciation + principal paydown) and cumulative cash flow, relative to your initial cash investment. For the projection, rent and maintenance are assumed to grow at the same annual rate as the property's appreciation.
Frequently Asked Questions
What is a good cash-on-cash return?
A cash-on-cash return of 8-12% is generally considered strong, though this varies significantly by market and property type. In high-appreciation markets, investors may accept lower cash returns. These are common industry benchmarks, not guarantees, and vary by market.
How is cash-on-cash different from cap rate?
Cap rate ignores financing and evaluates the property on its own merits. Cash-on-cash accounts for your specific mortgage and measures the return on your actual cash invested.
Should I include renovation costs?
Yes. Any cash you invest to get the property rent-ready should be included in your total cash investment. This gives you a true picture of your return.
Why does vacancy matter?
No rental property is occupied 100% of the time. A 5-8% vacancy rate is standard for most markets and ensures your cash flow analysis is realistic.