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Calculate the annual return on your actual cash invested, accounting for financing, vacancy, and expenses.
Taxes, insurance, PM, maint.
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Add the purchase, financing, and rent assumptions to see cash flow, total cash invested, and your cash-on-cash return.
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The calculator no longer uses seeded defaults behind the scenes. Enter every required number to unlock the return summary.
Free calculator guide
Cash-on-cash return is one of the fastest ways to compare rental deals when financing and cash required are different. This free calculator is designed to show the relationship between your annual cash flow and the actual dollars you have tied up in the property.
The calculator divides annual pre-tax cash flow by total cash invested. That gives you a cleaner way to compare leveraged deals than looking at gross yield or monthly cash flow in isolation.
Down payment, closing costs, rehab, and other upfront capital should all be reflected. Investors often understate the denominator, which makes the projected return look better than reality.
Cash-on-cash return is most useful as a comparison tool. Use it to compare multiple deals, financing structures, or markets, then pressure-test whether the return still works once you make the assumptions more conservative.
Cash on cash return measures annual pre-tax cash flow divided by the total cash you invested in the property. It is a practical way to compare leveraged rental deals.
That depends on the market, debt terms, and risk profile. Many investors use it as a screening threshold, then compare it against rent durability, rehab risk, and market quality before moving forward.
Cap rate ignores financing and upfront cash structure. Cash on cash return is often more useful when you want to know what your actual dollars are earning.