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Cash-on-Cash Return Calculator
See what the cash you actually put into a rental deal is earning. Combine purchase price, down payment, closing costs, rehab, expenses, and the loan into one cash-on-cash return number.
Cash-on-cash return
1.60%
Annual cash flow
$1,496
Monthly cash flow
$125
Cash invested
$93,750
Deal at a glance
Cash-on-cash return is modest — common in higher-priced markets where appreciation does more of the work.
Down payment
$81,250
Loan amount
$243,750
Monthly debt service
$1,663
Annual NOI
$21,450
Cash-on-cash return divides the first-year pre-tax cash flow after debt service by the actual cash invested. Cash invested in this estimate equals down payment plus closing costs plus upfront rehab or reserves.
EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.
Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.
Learn more about our review process on the EveryCalc methodology page.
Calculation notes and example
Leveraged cash-on-cash return formula
Cash invested equals down payment plus entered closing and rehab costs. Loan amount equals purchase price minus down payment, and monthly principal and interest uses the fixed-rate amortization formula. Annual NOI equals rent after vacancy minus 12 months of operating expenses. Annual pre-tax cash flow equals NOI minus 12 months of debt service. Cash-on-cash return equals that annual cash flow divided by cash invested. It excludes appreciation, principal paydown as a return, income tax, sale proceeds, and reserves not entered.
Debt-service sensitivity example
A $325,000 purchase with 25% down, $7,500 closing costs, and $5,000 rehab requires $93,750 of modeled cash. At $2,750 rent, 5% vacancy, and $825 monthly operating expenses, NOI is about $21,345. A 7.25% 30-year loan produces about $19,950 of annual debt service, leaving roughly $1,395 of pre-tax cash flow and a cash-on-cash return near 1.5%.
Make the denominator complete
- Include every upfront cash requirement: down payment, lender and closing costs, immediate rehab, and any reserves that are truly tied up in the deal.
- Use normalized vacancy and expenses before debt service; optimistic NOI can make leveraged returns look far stronger than they are.
- Cash-on-cash is a one-year income metric. Review cap rate, DSCR, principal paydown, capital needs, taxes, and exit risk separately.
Useful companion tools: Rental Property Calculator, Rental Cash Flow Calculator, Cap Rate Calculator, and DSCR Calculator.
How to interpret the cash-on-cash return result
Best use
Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.
Cross-check
Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.
Watch for
Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.
This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.
Before relying on this cash-on-cash return estimate
Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.
Confirm source numbers
Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.
Separate cash flow from total cost
A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.
Run conservative cases
Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.
Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.
Sources used for this calculator
These primary or official references help define the rules, terminology, safety checks, or source documents behind this estimate. Source links were checked in July 2026. They do not turn the calculator output into a quote, appraisal, tax determination, or professional opinion.
- Publication 527: Residential Rental Property
Internal Revenue Service
Primary federal reference for rental income, operating expenses, depreciation, and reporting; calculator cash flow is not taxable income.
How to Use
- Enter the purchase price along with the down payment percentage you plan to put down.
- Add closing costs and any upfront rehab or reserves so total cash invested is accurate.
- Enter monthly rent, vacancy assumption, and recurring monthly operating expenses.
- Set the interest rate and loan term to estimate the monthly debt service.
- Review cash-on-cash return alongside annual cash flow and monthly cash flow before comparing the deal with other investments.
Frequently Asked Questions
What is cash-on-cash return?
Cash-on-cash return is annual pre-tax cash flow divided by total cash invested. It tells you how the cash you actually put into the deal is performing in year one, including the effect of financing.
What is included in cash invested?
This calculator counts the down payment, closing costs, and any upfront rehab or reserves. Some investors also add holding costs incurred before the property is rent-ready.
How is this different from cap rate?
Cap rate ignores financing and measures property income performance. Cash-on-cash return measures the leveraged return on the actual cash you put in. The same property can show very different cash-on-cash returns at different down payment levels.
Does cash-on-cash include appreciation or principal paydown?
No. Cash-on-cash return tracks actual cash that hits your bank account after debt service. Appreciation, principal paydown, and tax benefits are real, but they show up in total return, not in cash-on-cash.
Why was my cash-on-cash return negative?
Negative cash-on-cash means operating expenses plus debt service exceed the income the property generates. Common causes are over-leveraged purchase, undersized rent assumption, or under-budgeted operating expenses.
Related Calculators
Cap Rate Calculator
Strip out financing and compare property income performance on a cap rate basis.
Rental Cash Flow Calculator
See a detailed monthly cash flow breakdown across operating expenses and debt service.
DSCR Calculator
Pressure-test whether net operating income covers the loan by the lender minimum.
Vacancy Rate Calculator
Stress-test how higher vacancy changes the leveraged return on a rental.
ARV Calculator
If the deal is a BRRRR, run ARV and max allowable offer alongside leveraged return.
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