Cash-on-Cash Return Calculator
Calculate your annual cash return as a percentage of the cash you invested.
Cash Invested at Purchase
Annual Income & Expenses
Results
What Is Cash-on-Cash Return?
Cash-on-cash (CoC) return measures the annual pre-tax cash flow you earn as a percentage of the total cash you invested in the property. Unlike cap rate (which ignores financing), cash-on-cash accounts for your mortgage payments and reflects the actual return on your out-of-pocket investment.
Annual Cash Flow = Gross Rent − Vacancy − Mortgage − Operating Expenses
A cash-on-cash return of 8–12% is generally considered strong for a rental property. Returns below 4–5% may indicate the property is not cash-flowing well at current financing rates.
Cash-on-Cash vs. Cap Rate
Cap rate and cash-on-cash return measure related but different things. Cap rate measures the property's income performance independent of how it is financed. Cash-on-cash measures your personal return based on your actual financing and cash invested. A property with a 7% cap rate might produce a 10% cash-on-cash return with leverage, or a 5% return with more conservative financing. Use the Cap Rate Calculator alongside this one for a complete picture.