Cash-on-Cash Return Calculator
How much cash does the property pay you each year relative to the cash you put in?
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Cash-on-Cash Return Calculator by TheCalcTools
How the Cash-on-Cash Return Calculator works
Enter the price, down payment, closing costs, mortgage terms, rent and annual running costs.
The calculator finds the mortgage payment and the annual cash left after paying it.
Dividing that by the cash you invested gives the return.
The formula
Worked example
Using the default values shown in the calculator:
| Purchase price | $300000 |
|---|---|
| Down payment (%) | 25 % |
| Closing costs and repairs | $9000 |
| Mortgage rate (APR %) | 6.5 % |
| Mortgage term (years) | 30 |
| Monthly rent | $2400 |
| Annual operating expenses | $8000 |
- Loan = $300,000 × 75% = $225,000; payment = $1,422.15 a month.
- Cash invested = $75,000 + $9,000 = $84,000.
- Annual cash flow = $3,734, a cash-on-cash return of 4.45%.
Result:
| Cash invested | $84,000 |
|---|---|
| Monthly mortgage payment | $1,422.15 |
| Annual cash flow after debt service | $3,734 |
| Cash-on-cash return | 4.45% |
Frequently asked questions
How is it different from cap rate?
Cap rate ignores financing. Cash-on-cash includes the mortgage, so it reflects the leverage you use.
Does it include appreciation or tax?
No. It measures only the cash cash flow, not equity growth, depreciation or income tax.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.