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Real Estate Tool

Cash-on-Cash Return Calculator

Estimate annual cash flow and cash-on-cash return based on income, expenses, debt service, and the cash you have invested in the deal.

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Enter income, expenses, debt service, and total cash invested to calculate cash-on-cash return.
Tip: Switch modes to estimate return, required cash flow, max cash invested, or rent needed.

Enter the investment assumptions

Optional. Used only in the result summary.
Income
Expected gross rent before vacancy and expenses.
Laundry, parking, storage, pet rent, etc.
Percent of gross income reserved for vacancy.
Annual Operating Expenses
HOA, utilities paid by owner, licenses, etc.
Debt / Cash Invested
Principal and interest, or total monthly loan payment if preferred.
Down payment, closing costs, repairs, reserves, and other upfront cash.
Used for required cash flow, max investment, and rent modes.

What is cash-on-cash return?

Cash-on-cash return estimates the annual cash flow produced by a property compared to the actual cash invested in the deal.

Cash-on-Cash Return = Annual Pre-Tax Cash Flow ÷ Total Cash Invested

This metric is useful because it focuses on the investor's actual out-of-pocket cash, not the total property value. It is different from cap rate because it includes debt service and depends heavily on loan structure, down payment, closing costs, and repair budget.

Important note

Cash-on-cash return does not include appreciation, depreciation, tax benefits, principal paydown, or future rent growth. Use it as a screening tool, not a complete investment analysis.

How to use this cash-on-cash calculator

Find Cash-on-Cash Return — Enter income, expenses, debt service, and total cash invested. The calculator estimates annual cash flow and return.

Find Required Cash Flow — Enter total cash invested and a target return. The calculator shows the annual and monthly cash flow needed.

Find Max Cash Invested — Enter cash flow and a target return. The calculator estimates the maximum cash investment supported by that return target.

Find Minimum Rent — Enter expenses, debt service, cash invested, and target return. The calculator estimates the monthly rent needed to hit the target.

Disclaimer: This calculator is for educational and planning purposes only. It does not provide financial, legal, tax, investment, lending, or real estate advice. Results are estimates based on the information entered and should be verified before making financial decisions.