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Cash-on-Cash Return Calculator for Rental Property

Cash-on-cash return is your annual pre-tax cash flow divided by the total cash you invested (down payment + closing costs + rehab). It answers one question: what does each dollar of your money earn per year? Change any number below and the results update.

How it's calculated

Cash-on-cash return = annual cash flow ÷ total cash invested × 100

Total cash invested = down payment + closing costs + rehab
Monthly cash flow = rent × (1 − vacancy) − operating expenses − mortgage payment
Mortgage payment uses the standard amortization formula on the loan (price − down payment)

Unlike cap rate, cash-on-cash includes your financing, so the same property shows a different return with 20% down than with 30% down.

Worked example

The calculator above starts with these numbers: purchase price $250,000; down payment 25%; closing costs $5,000; rehab / repairs $10,000; interest rate 7%; loan term 30 years; monthly rent $2,200; vacancy 5%; monthly operating expenses $650.

Total cash invested: $77,500
Monthly mortgage (P&I): $1,247
Monthly cash flow: $193
Annual cash flow: $2,311
Cap rate (NOI ÷ price): 6.91%
Cash-on-cash return: 2.98%

Frequently asked questions

What is a good cash-on-cash return?

Many rental investors look for 8–12%, but it depends on the market and your goals. Appreciation-focused markets often show 2–5% cash-on-cash; cash-flow markets can show more. Compare deals against each other and against what your cash could earn elsewhere.

Is cash-on-cash return the same as ROI?

No. Cash-on-cash only counts cash flow. A full ROI would also count loan paydown, appreciation and tax effects, which are real but are not cash in your pocket each year.

Should closing costs be included?

Yes. Every dollar you put into the deal belongs in the denominator: down payment, closing costs, points, and up-front repairs.

Related guides

More free calculators: Cap Rate · BRRRR · Rent vs Sell

Estimates only, for comparing deals. This is not investment, tax, or lending advice. Verify numbers with your lender and a licensed professional before you buy or sell.