Cash-on-Cash Return Calculator
Find out exactly what return you'll earn on your invested cash. Enter your deal details and get your cash-on-cash return instantly.
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Monthly rent × 12
Property tax + insurance + management + maintenance (exclude mortgage)
Cash-on-Cash Return Formula
Annual Cash Flow = NOI − Annual Mortgage Payments
Reconsider the deal or negotiate a lower price. May be acceptable in high-appreciation markets.
The typical target for buy-and-hold investors. Good balance of cash flow and manageable risk.
Strong cash-on-cash return. Verify rent and vacancy assumptions to confirm the numbers are sustainable.
Cash-on-Cash Return — Common Questions
What is cash-on-cash return?
Cash-on-cash (CoC) return measures your annual pre-tax cash flow divided by the total cash you invested. Formula: CoC Return = Annual Cash Flow ÷ Total Cash Invested × 100. Unlike cap rate, CoC accounts for your financing (mortgage payments).
What is a good cash-on-cash return?
Most buy-and-hold investors target 6–10% CoC return. Below 6% is generally considered weak for a rental. Above 10% is excellent but verify the assumptions — high CoC sometimes signals higher vacancy or maintenance risk.
What counts as 'total cash invested'?
Total cash invested = down payment + closing costs + any upfront repairs or renovation costs. It does not include the financed portion of the purchase price.
Does cash-on-cash include appreciation?
No. CoC return is purely a cash flow metric — it measures income return on your equity. To model total return including appreciation and loan paydown, you need an IRR or equity multiple calculation.
How is CoC different from cap rate?
Cap rate ignores financing and measures property-level yield. Cash-on-cash accounts for your specific financing terms (down payment, mortgage rate, term) — so two investors buying the same property at different leverage levels will have different CoC returns.
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