Measure yearly pre-tax cash flow against the cash you invested.
Please do not make financial decisions based on these results.
What is the Cash On Cash Return Calculator?
Measure yearly pre-tax cash flow against the cash you invested. To use the Cash On Cash Return Calculator, enter annual cash flow after mortgage, down payment, closing costs, repairs; it returns cash on cash return, total cash invested, and shows them instantly as you type.
Measuring a rental property
Rental investors compare properties with a few standard ratios. Net operating income (NOI) is rent minus operating costs, before the mortgage. The cap rate divides NOI by price. Cash-on-cash return divides yearly cash flow by the cash you actually invested. Each answers a different question, so use more than one.
- Cap rate. Return on the price, ignoring financing. See the cap rate calculator.
- NOI. Income after operating costs. See the NOI calculator.
- Cash-on-cash. Return on your own cash. See the cash-on-cash calculator.
- Gross rent multiplier. A quick price-to-rent screen. See the GRM calculator.
Costs that are easy to forget
Vacancy, repairs, property management, insurance, property tax and capital replacements (roof, furnace) reduce the rent you actually keep. Use conservative figures for each and test a bad year, not only a good one. The rental property calculator puts the whole picture in one place.
Rent from the tenant’s side
Landlords often ask for income of about three times the rent; check it with the 3x rent calculator. For moves, partial months and increases, use the prorated rent calculator and the rent increase calculator.
How to use the Cash On Cash Return Calculator
- Enter your numbers. Start with Annual cash flow after mortgage ($), Down payment ($), Closing costs ($), then fill in Repairs ($). Use figures from a lender quote or your tax bill where you have them, and keep the term and rate realistic. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Cash on cash return, and the cards below show Total cash invested. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Cash On Cash Return Calculator using the default values shown in the calculator above:
Inputs
| Annual cash flow after mortgage ($) | 9,600 |
|---|---|
| Down payment ($) | 80,000 |
| Closing costs ($) | 8,000 |
| Repairs ($) | 12,000 |
Results
| Cash on cash return | 9.6% |
|---|---|
| Total cash invested | $100,000.00 |
With these inputs the calculator returns Cash on cash return: 9.6%. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Annual cash flow after mortgage ($) from 9,600 to 11,520 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Cash on cash return | 9.6% | 11.52% | +20% |
| Total cash invested | $100,000.00 | $100,000.00 | 0% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Cash On Cash Return Calculator reports Cash on cash return and total cash invested. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
How is cash on cash different from ROI?
It counts only cash invested and cash flow, not appreciation or loan paydown.
What is included in a monthly mortgage payment?
Principal and interest, plus property tax, homeowners insurance, PMI if your down payment is under 20%, and HOA fees if they apply.
How much house can I afford?
A common rule is to keep housing costs under about 28% of gross income and total debt under 36%. The House Affordability Calculator applies those limits to your numbers.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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