Cash-on-Cash Return Calculator
Cash-on-cash return compares the cash a property pays you each year with the cash you put in. Unlike cap rate, it reflects your financing.
Enter your figures below. Results update as you type.
Cash-on-cash return8.47%
- Total cash invested
- $85,000.00
- Cash flow per month
- $600.00
- Years to get your cash back
- 11.8
How the Cash-on-Cash Return calculation works
Cash-on-cash return = yearly pre-tax cash flow / total cash invested x 100
Investing $85,000 in total ($75,000 down, $6,000 closing, $4,000 repairs) for $7,200 a year of cash flow is a cash-on-cash return of 8.47%. At that pace it takes 11.8 years of cash flow to recover the cash invested.
Frequently asked questions
What is a good cash-on-cash return?
Many investors aim for 8% to 12%. In high-priced markets returns are often lower, with investors relying more on the property gaining value.
What is the difference between cash-on-cash return and ROI?
Cash-on-cash counts only the yearly cash flow against cash invested. Total ROI also includes loan principal paid down and any rise in the property's value.
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