Direct answer
How this metric is calculated
Cash-on-cash return = annual pre-tax cash flow ÷ initial cash invested × 100.
Cash-on-cash analysis
Estimate the annual pre-tax cash flow earned on the cash you actually invest after financing.
Annual operating costs
Financing and cash invested
Cash-on-cash return
1.75%
Annual pre-tax cash flow divided by down payment plus entered upfront costs.
Gross yield
10.00%
NOI / year
$18,520
Monthly cash flow
$121
Cash invested
$83,000
Planning estimate only. Tax treatment, financing, future rent, vacancies and operating expenses vary by property and market.
Use it correctly
Compare like-for-like properties
Keep vacancy, management and operating-cost assumptions consistent when comparing properties. A higher headline return can disappear when service charges, maintenance or vacancy are ignored.
Frequently asked questions
Cash-on-Cash Return Calculator FAQs
What is cash-on-cash return?
Cash-on-cash return measures annual pre-tax cash flow against the actual cash invested, such as the down payment and entered upfront costs.
Does cash-on-cash return include appreciation?
Not in this calculator. It focuses on operating cash flow after debt service, which avoids assuming future price growth.
Why can cash-on-cash return differ from cap rate?
Cap rate ignores financing. Cash-on-cash return depends on the loan, interest rate, down payment and other cash invested by the specific buyer.