Tool
Cash-on-Cash Return Calculator
Estimate cash-on-cash return from annual cash flow and total cash invested.
Real Estate Calculators
What this tool does
Measure how much cash income a property generates relative to the cash you invested upfront. Commonly used to compare rental acquisitions and refinance scenarios.
How to use
- Enter annual pre-tax cash flow after debt service and operating expenses.
- Enter total cash invested including down payment, closing costs, and rehab.
- Review the cash-on-cash percentage and compare with other investments.
Formula
cash-on-cash return = (annual pre-tax cash flow ÷ total cash invested) × 100
Examples
Single-family rental
Input: Annual cash flow: $12,000, Cash invested: $100,000
Output: Cash-on-cash return: 12.00%
12,000 ÷ 100,000 × 100 = 12% cash-on-cash return.
Assumptions
- Annual cash flow is pre-tax and after debt service.
- Total cash invested includes down payment and upfront costs.
- Output is an estimate only and not financial, tax, or investment advice.
Common use cases
- Compare rental property acquisitions
- Evaluate refinance and cash-out scenarios
- Screen deals before deeper underwriting
FAQ
Is this financial advice?
No. This calculator provides a basic estimate for educational purposes only.
Should I include closing costs?
Yes. Total cash invested should reflect all out-of-pocket acquisition costs.
How is this different from cap rate?
Cap rate ignores financing. Cash-on-cash reflects leverage and actual cash invested.
Source notes
- Cash-on-cash return measures annual cash flow against equity invested at purchase.
- Pair with the cap rate calculator to compare unlevered and levered returns.
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Last reviewed: 2026-05-23