Cash-on-Cash Return Calculator
Annual pre-tax cash flow / total cash invested × 100. Measures return on actual money in.
Result
Cash-on-cash return
7.50%
Acceptable
- Annual cash flow$6,000
- Cash invested$80,000
- CoC (%)7.500
- Years to recoup investment13.3
Step-by-step
- CoC = 6,000 / 80,000 × 100 = 7.50%.
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
CoC is on cash invested (so includes effect of mortgage). Cap rate is unlevered (ignores financing). High-leverage deals: CoC > cap rate.
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