Cash-on-Cash Return Calculator
Annual pre-tax cash flow / total cash invested × 100. Measures return on actual money in.
Result
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How to use this calculator
- Enter annual after-mortgage, before-tax cash flow.
- Enter total cash you have invested.
- Read CoC.
About this calculator
Cash-on-cash return measures annual cash flow against the cash you actually invested (down payment + closing + repairs needed at acquisition). Higher leverage often gives higher CoC because the denominator (cash invested) shrinks. Doesn't account for appreciation or principal pay-down — for that, use ROI-rental-property.
Frequently asked
Cash-on-cash vs cap rate?+
CoC is on cash invested (so includes effect of mortgage). Cap rate is unlevered (ignores financing). High-leverage deals: CoC > cap rate.
What's a good CoC?+
Many investors target 8-12% CoC. Very-high-CoC deals (>15%) often involve high risk or unusual circumstances.
Should I include principal pay-down?+
No — CoC is cash flow only. Principal pay-down is "phantom income" (builds equity but no cash). Track separately.
Tax-adjusted CoC?+
Take after-tax cash flow / cash invested. Real estate has significant tax benefits (depreciation), so post-tax CoC is often higher than pre-tax.
Why might CoC change over time?+
Rents rise → cash flow rises → CoC rises. But if you didn't invest more cash, your CoC accelerates as rents grow against fixed initial investment.
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