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RealEstateTools

Uniform worksheet · Property Management

Form RET-306 · Effective August 2026 · Borrower’s copy

Cash-on-Cash Return Calculator

Calculate your annual return on total cash invested in rental property.

Investment Details

$
$
$

Annual Cash Flow

$
$

Total Cash Invested

$0

Cash-on-Cash Return

0.00%

Breakdown

Annual Cash Flow (Before Tax)$0
Total Cash Invested$0
Cash-on-Cash Return0.00%

How to Use This Cash-on-Cash Return Calculator

See Methodology

Our free cash-on-cash return calculator measures your annual pre-tax cash flow as a percentage of the cash you actually invested in the property.

Cash-on-cash return = (Annual Cash Flow / Total Cash Invested) x 100. This metric shows how well your invested money is performing, accounting for financing.

Unlike cap rate, cash-on-cash considers your actual mortgage payment, making it a more practical metric for evaluating your real-world investment performance.

Related Topics

cash on cash return calculator ·cash on cash return formula ·investment property cash return ·rental property cash return ·

Frequently Asked Questions about Cash-on-Cash Return

  • What is a good cash-on-cash return?

    8-12% is considered strong. Below 6% may not justify the risk and effort of real estate investing compared to passive investments.

  • How do I calculate cash-on-cash return?

    Cash-on-cash = (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100. Total cash invested includes down payment, closing costs, and renovations.

  • What is the difference between cash-on-cash and ROI?

    Cash-on-cash focuses on cash flow relative to cash invested. ROI includes all returns (appreciation, equity buildup, tax benefits). Cash-on-cash is more practical for cash flow analysis.

  • How does financing affect cash-on-cash return?

    Leverage amplifies returns. With a mortgage, your cash invested is smaller, so the same cash flow produces a higher percentage return. But financing also increases risk.

  • How do I improve my cash-on-cash return?

    Increase rent, reduce expenses, negotiate lower rates, improve management efficiency, or refinance to reduce mortgage costs.

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