Cash-on-Cash Return Calculator
Measure a rental’s cash-on-cash return: the annual pre-tax cash flow divided by the actual cash you put in — then compare it to the common 8–12% investor target.
How you compare to other people
Where you land
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Learn moreWhat cash-on-cash tells you
Cash-on-cash return measures the annual cash flow you earn on the actual cash invested — down payment, closing costs and rehab — not the full property price. Because it ignores appreciation and loan paydown, it captures the near-term income yield of a deal. Many investors look for 8–12%, though targets vary by market and strategy.
How it’s calculated & sources
Cash-on-cash = annual pre-tax cash flow ÷ total cash invested × 100. Cash flow is rent minus all operating costs and debt service; cash invested is your out-of-pocket total.
Benchmark: common investor target of 8–12% cash-on-cash (rule of thumb; varies by market).
Results update as you type and are general estimates, not personalized advice. Verify with a professional.
Worked example
A rental throwing off $6,000/year in cash flow on $60,000 invested returns 10% cash-on-cash — squarely in the target range, about $500/month.
Frequently asked questions
Cash-on-cash vs cap rate?
Cap rate ignores financing (NOI ÷ price); cash-on-cash includes your loan, so leverage changes it. Use both.
Does it include appreciation?
No — it is a cash-income measure only. Total return also includes appreciation and principal paydown.
What counts as cash invested?
Down payment plus closing costs plus any upfront repairs/rehab — everything out of pocket to acquire and stabilize the property.