Cash-on-Cash Return Calculator
See how hard the actual cash in your deal is working — this year's pre-tax cash flow measured against every dollar you put in.
How it works
Cash-on-cash return answers a plain question: for the money I actually spent, what did I get back this year? Put $60,000 down and pocket $7,200 of cash flow after the mortgage, and you're earning 12% on your cash. It's the return that lands in your bank account, not on paper.
The number that matters on the bottom is real cash flow — rent collected minus every payment that goes out, mortgage included. The number on top is total cash in: down payment, closing costs, and any money you spent fixing the place up before it earned a dime.
Unlike cap rate, this figure loves leverage. Borrow more and put less of your own cash in, and a modest property return can turn into a big cash-on-cash number — as long as the rent comfortably covers the loan. That's the upside and the risk in one figure.
Frequently asked questions
How is cash-on-cash return different from cap rate?
Cap rate ignores your mortgage and describes the property itself. Cash-on-cash return includes the loan and measures the return on the actual cash you invested, so financing choices change it a lot.
What goes into total cash invested?
Everything you paid out of pocket to get the deal running: the down payment, closing costs, and any upfront repairs or renovations. It's the cash at risk, not the full purchase price.
Can cash-on-cash return be negative?
Yes. If the property's expenses and mortgage payments outrun its income, your annual cash flow is negative and so is the return. That means the deal is costing you money to hold each year.