Loan Cash-on-Cash Return Calculator
Measure a rental property's return on the cash you actually put in. Unlike cap rate, cash-on-cash accounts for your down payment, closing costs, and mortgage — so it tells you what your money is really earning.
| Down payment | $0 |
| Total cash invested | $0 |
| Annual pre-tax cash flow | $0 |
| Monthly cash flow | $0 |
How it works
Cash-on-cash return = Annual pre-tax cash flow ÷ Total cash invested. Total cash invested is your down payment plus closing costs (and any initial rehab). Cash flow is what's left after every expense, including the mortgage payment.
Frequently asked questions
What is a good cash-on-cash return?
Many investors target 8–12% as a solid baseline for residential rentals, and want it to beat what that cash could earn elsewhere. Your personal target depends on risk tolerance and market — set it before you shop.
Cash-on-cash vs. cap rate — which matters more?
They answer different questions. Cap rate (financing-neutral) compares properties; cash-on-cash (financing-aware) judges your specific deal. Run both on every property you seriously consider.
Why does leverage change the return so much?
A smaller down payment means less cash invested, so the same cash flow produces a higher percentage return — but also higher risk, higher payments, and thinner margins if anything goes wrong. Try 10% vs 25% down above.
🏠 Compare properties properly
Pair this with the cap rate calculator to screen deals on both metrics.