Cash-on-Cash Return Calculator

Calculate cash-on-cash return for rental property investments. Compare to stock market returns.

By Konstantin Iakovlev · Updated September 2026 · Source: CFPB — Owning a Home

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Cash-on-Cash Return

16.44%

Monthly Cash Flow

$1,000.00

Rating

Excellent

Cash-on-Cash Breakdown

Down Payment$60,000.00
Closing Costs$8,000.00
Repairs / Rehab$5,000.00
Total Cash Invested$73,000.00
Annual Cash Flow$12,000.00
Cash-on-Cash Return16.44%
Monthly Cash Flow$1,000.00

How Does This Compare?

S&P 500 average annual return: ~10% | Real estate CoC target: 8-12% | High-yield savings: ~4-5%

Use the Cash-on-Cash Return Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Cash-on-cash return measures the profitability of a rental property against the actual cash you put into it. For real estate investors, the appeal is that it isolates the annual return on your own money down, which makes it easy to weigh a property against other places that money could go.

The calculation divides annual pre-tax cash flow by total cash invested. You enter the cash flow as one figure: annual rental income minus operating expenses such as property taxes, insurance, and maintenance, and minus the year's mortgage payments. Total cash invested is your down payment plus closing costs plus any upfront repairs or renovation, and the calculator adds those three for you.

Two limits are worth keeping in view: this figure tracks cash flow alone and leaves out property appreciation and tax benefits, both of which can move overall returns considerably. Investors often understate their numbers by leaving out initial outlays, like repairs done before a tenant moves in, so account for every dollar spent up front and build in a buffer for the expenses you can't yet see.

Example: Investing in a Rental Property

  1. 1 Step 1: Input your initial investment. Let's say you put down a $50,000 down payment, paid $5,000 in closing costs, and spent $10,000 on initial renovations. The calculator adds them to $65,000 of total cash invested.
  2. 2 Step 2: Work out your annual cash flow and enter it. Your annual rental income is $24,000 ($2,000/month). Annual operating expenses (taxes, insurance, maintenance) are $6,000, and your annual mortgage payments are $12,000, so pre-tax cash flow is $24,000 - $6,000 - $12,000 = $6,000.
  3. 3 Step 3: The calculator divides your annual cash flow of $6,000 by your total cash invested of $65,000. Your Cash-on-Cash Return is 9.23%, with monthly cash flow of $500.
  4. 4 Step 4: The calculator rates 9.23% as Good (its bands: 12% and up Excellent, 8% to 12% Good, 5% to 8% Average, below 5% Poor). The figure leaves out appreciation, loan paydown and tax effects, and this simplified cash flow has no allowance for vacancies or unexpected repairs, so build those into the expenses before relying on it.

Source: CFPB — Owning a Home · Last updated: September 2026

Frequently Asked Questions

What is a good cash-on-cash return for rental property?
Most real estate investors target 8-12% cash-on-cash return. The calculator rates 12% and up as Excellent and 8% to 12% as Good. Below 5% may not justify the effort and risk compared to passive index fund investing.
How is cash-on-cash return different from cap rate?
Cash-on-cash return measures the return on your actual cash invested (factoring in mortgage leverage), while cap rate measures the return on the total property value as if you paid all cash. Cash-on-cash is more relevant for leveraged investors.
Does cash-on-cash return include appreciation?
No. Cash-on-cash return only measures annual pre-tax cash flow divided by total cash invested. It does not account for property appreciation, equity buildup from mortgage paydown, or tax benefits. Use a total ROI calculator for the complete picture.

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