Cash-on-Cash Return Calculator
Type in a deal. Get your cash-on-cash return, cap rate, DSCR, and real monthly cash flow instantly. No sign-up, no email.
One deal is easy. A portfolio needs a model.
This tool gives you the answer for one year. The Rental Property Analyzer gives you the whole picture, in Excel and Google Sheets you own.
- 30-year projection: cash flow, equity, loan balance
- Hold-period IRR + sale proceeds model
- Cap rate, cash-on-cash, DSCR, GRM, OER, 1% rule
- Same engine, cross-checked to the cent
What cash-on-cash return actually tells you
Cash-on-cash return measures the pre-tax cash a rental puts in your pocket each year against the actual cash you put into the deal. Unlike cap rate, it accounts for your mortgage, so it reflects the return a leveraged buyer really earns.
What is a good cash-on-cash return?
There is no universal number, it depends on your market and strategy. These are common rules of thumb investors use as a starting point, not advice.
| Cash-on-cash | How many investors read it |
|---|---|
| Below 0% | The property loses cash every month before taxes |
| 0% – 5% | Thin. Often a bet on appreciation, not cash flow |
| 5% – 8% | A typical target for a stabilized long-term rental |
| 8% – 12%+ | Strong cash flow, common goal for value-add deals |
Questions investors ask
How is cash-on-cash return different from cap rate?
Cap rate ignores financing: it is net operating income divided by the property value, the return as if you paid all cash. Cash-on-cash divides your actual annual cash flow (after the mortgage) by the cash you invested. Two buyers of the same property can have the same cap rate but very different cash-on-cash returns depending on their loan.
Does this calculator include my mortgage?
Yes. It calculates your monthly principal and interest from the loan amount, rate, and term, then subtracts a full year of payments from net operating income to get true cash flow. That is what separates cash-on-cash from cap rate.
What counts as "cash invested"?
The real money out of your pocket to acquire the deal: the down payment, closing costs, and any upfront rehab. It does not include the loan, because that is the bank's money, not yours.
Why set aside maintenance and CapEx?
A roof, a water heater, and turnover between tenants are real costs even in months you do not pay them. Reserving a percentage of income for maintenance and capital expenditures keeps the return honest. Skip them and your calculator will lie to you.
Can I trust the math?
Every formula here is cross-checked against an independent simulation built from scratch, the same verification we run on our paid Rental Property Analyzer. The numbers match to the cent.