Cash on Cash Return Calculator
Measure your annual cash return relative to the actual cash you invested.
Down payment + closing costs + renovation costs
Cash-on-Cash Formula
Example: $80,000 invested (deposit + costs), $24,000 rent, $5,000 expenses, $15,000 mortgage: ($24,000 − $5,000 − $15,000) / $80,000 × 100 = 5.00% cash-on-cash return.
Cash-on-cash return measures the annual pre-tax cash flow you receive relative to the actual cash you put into the deal. Unlike cap rate, it includes mortgage payments — making it the most practical metric for leveraged property investors.
Why it matters for leveraged investors: With a 20% deposit, you control 100% of the property but only invested 20% in cash. If the property generates positive cash flow after all costs including mortgage, your cash-on-cash return can significantly exceed the cap rate. This is the power of leverage.
What counts as "cash invested": Your down payment, all closing costs (stamp duty, legal fees, inspections), and any immediate renovation costs. The mortgage principal is NOT included — only actual out-of-pocket cash.
A cash-on-cash return of 8–12% is generally considered good. Returns below 5% may not adequately compensate for the risk and effort of managing rental property. Above 12% is excellent but may indicate higher risk or significant value-add opportunity.
What this calculator doesn't include
This gives you year-one cash return only. It doesn't account for appreciation, equity buildup through mortgage paydown, tax benefits, or country-specific costs. For complete multi-year analysis — use our full ROI calculator.
Add exact closing costs, 10-year projections with equity growth, and exit scenarios with capital gains tax.
