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Cash-on-Cash Return Calculator

See your year-one cash yield: annual cash flow divided by the cash you actually invested.

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Results

Total cash invested--
Annual cash flow--
Cash-on-cash return--
Monthly cash flow--

Estimate only, runs entirely in your browser. SealedFolio tracks this automatically once you own the property. See how.

How to calculate cash-on-cash return

Cash-on-cash return answers a simple question: for every dollar you put in, how much cash comes back in a year? The formula is annual pre-tax cash flow / total cash invested.

  1. Total cash invested: down payment plus closing costs plus any upfront repairs.
  2. Annual cash flow: effective rent minus operating expenses and the mortgage, times 12.
  3. Divide and convert to a percentage. $4,600 of cash flow on $79,000 invested is a 5.8 percent cash-on-cash return.

Cash-on-cash reflects your financing, unlike cap rate. For the full deal, pair it with the rental ROI and rental income calculators.

Frequently asked questions

What is a good cash-on-cash return?

Many buy-and-hold investors target 8 to 12 percent cash-on-cash, but it depends on the market, leverage, and risk. Lower-risk properties in expensive markets often return less; higher-leverage or value-add deals can return more. Compare against what the same cash would earn elsewhere.

How is cash-on-cash return calculated?

Cash-on-cash return = annual pre-tax cash flow divided by total cash invested, as a percentage. Cash invested includes the down payment, closing costs, and any upfront repairs. Unlike cap rate, it reflects your financing.

What is the difference between cash-on-cash return and ROI?

Cash-on-cash return measures only the annual cash flow against cash invested. Total ROI also includes principal paydown, appreciation, and tax benefits. Cash-on-cash is the year-one cash yield; ROI is the fuller long-term picture.