Cash-on-cash return calculator
Cash-on-cash return shows how hard your actual cash works: annual pre-tax cash flow divided by the total cash you put into the deal.
Cash-on-cash return
-2.3%
Annual cash flow
-$2,357
Monthly cash flow
-$196
Total cash invested
$103,000
Mortgage P&I
$1,746
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How it's calculated
Cash-on-cash = annual cash flow ÷ total cash invested × 100.
Cash invested = down payment + closing costs + rehab. Cash flow = rent − operating expenses − mortgage principal & interest (standard amortization).
FAQ
What is a good cash-on-cash return?
Many buy-and-hold investors target 6-10%+, but it depends on your market, leverage and how much appreciation you expect. Set your own minimum in your buy box.
Does cash-on-cash include appreciation or principal paydown?
No. It only counts cash flow, which is why it pairs well with cap rate and DSCR.
Estimates only. Not financial, investment, legal or tax advice. Rent estimates come from HUD Fair Market Rents (FY2026 Small Area FMRs), which are 40th-percentile gross rents used for the Housing Choice Voucher program and may differ from market rent. Taxes, insurance and expenses are assumptions you control. Verify every number with your lender, agent and local data before making an offer.