Return on actual cash invested. The Cash-on-Cash Return Calculator takes cash invested (down payment, closing costs, repairs), annual net cash flow after mortgage and expenses and returns cash-on-cash return plus monthly cash flow, years to recover the cash invested. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Property returns depend on assumptions about rent, occupancy, costs and appreciation that are easy to make optimistic. Enter conservative figures and remember that transaction costs, taxes and vacancy periods are real. Use the worked example below to check the maths against your own figures.
How the Cash-on-Cash Return Calculator works
The return on the money you actually put in, after the mortgage is paid. Leveraged property investors use it rather than cap rate because it reflects the financing.
Worked example
With the example values (cash invested (down payment, closing costs, repairs) of $100,000, annual net cash flow after mortgage and expenses of $9,000), the cash-on-cash return is 9%; monthly cash flow $750.00, years to recover the cash invested 11.1 years. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is cash-on-cash return calculated?
cash-on-cash return = annual pre-tax cash flow ÷ cash invested.
Which figures do I need?
Cash invested (down payment, closing costs, repairs), annual net cash flow after mortgage and expenses. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Which costs are easy to forget?
Vacancy periods, maintenance, property tax, insurance, brokerage on purchase and sale, and stamp duty. Include them for a realistic return.
