Cash-on-Cash Return Calculator

How to use this calculator

Enter the property’s monthly cash flow, then the cash you invested — down payment, closing costs, and any upfront rehab. The calculator annualizes the cash flow, totals your invested capital, and returns your cash-on-cash percentage, plus a table across a range of cash-flow outcomes.

What the metrics mean

• Cash-on-cash return — annual pre-tax cash flow divided by total cash invested.
• Cash flow — what is left after operating expenses and the mortgage payment.
• Cash invested — down payment plus closing costs plus upfront rehab.
• Pre-tax — before income tax — the return is measured on cash, not after-tax dollars.

Frequently asked questions

How do you calculate cash-on-cash return?

Cash-on-cash return = annual pre-tax cash flow ÷ total cash invested. Total cash invested is your down payment plus closing costs plus any upfront rehab.

What is a good cash-on-cash return?

Many rental investors target 8–12% cash-on-cash, though it varies by market, strategy, and risk tolerance. Lower-risk, appreciation-focused markets often accept lower cash returns.

How is cash-on-cash different from cap rate?

Cap rate ignores financing and measures the unlevered return on price. Cash-on-cash measures the return on the actual cash you put in after the mortgage, so leverage changes it.

Does cash-on-cash include appreciation?

No. It is purely the cash return in a given year. It excludes appreciation, principal paydown, and tax benefits, which together make up your total return.

Underwriting returns on every lead? dre1mery.com computes cash-on-cash and cap rate the moment a deal lands.