Cash-on-Cash Return Calculator
Measure your annual return on the actual cash invested
Investment Details
Enter property price and rental income to calculate returns
Results update automatically as you type
Cash-on-Cash Return Formula:
CoC Return = (Annual Cash Flow / Total Cash Invested) × 100
Where Annual Cash Flow = NOI - Annual Debt Service
What is Cash-on-Cash Return?
Cash-on-Cash Return (CoC) measures the annual pre-tax cash flow relative to the total cash invested. Unlike cap rate, it accounts for financing and shows your actual return on the cash you put into the deal.
How to Calculate Cash-on-Cash Return
CoC Return = (Annual Cash Flow / Total Cash Invested) × 100
Total Cash Invested includes your down payment, closing costs, and any rehab or initial expenses. Annual Cash Flow is your NOI minus annual debt service (mortgage payments).
What's a Good Cash-on-Cash Return?
- 8-12% - Generally considered a good return for rental properties
- 12-15%+ - Excellent returns, often found in value-add opportunities
- 5-8% - Acceptable if strong appreciation potential or other benefits
- <5% - May not justify the risk; consider alternatives
Cash-on-Cash vs Cap Rate
Cap Rate
- • Ignores financing
- • Compares property value
- • Market-level metric
Cash-on-Cash
- • Includes financing
- • Measures YOUR return
- • Investor-level metric
The Power of Leverage
Financing can significantly boost your cash-on-cash return. For example, an 8% cap rate property financed with 75% LTV at favorable terms might generate 12-15% cash-on-cash. However, leverage also amplifies risk—if rents drop or vacancies increase, your returns can turn negative while you still owe mortgage payments.
This calculator provides estimates for informational purposes only. Results depend on the accuracy of your inputs and do not constitute investment, financial, tax, or legal advice. Consult qualified professionals before making investment decisions.