Cash-on-Cash Return Calculator
Calculate return on your invested cash.
Cash on Cash Return Calculator
Calculate leveraged real estate returns
Formula
CoC = Annual Cash Flow / Total Cash Invested × 100How to Use
- 1Enter annual cash flow — Input your annual net cash flow (rent minus ALL expenses including mortgage).
- 2Enter total cash invested — Input down payment, closing costs, and any renovation costs you paid cash.
- 3Calculate CoC return — Cash-on-Cash = Annual Cash Flow ÷ Total Cash Invested × 100.
- 4Evaluate the deal — Compare your CoC return to alternative investments and your target return.
Frequently Asked Questions
What is a good cash-on-cash return?
8-12% is generally considered good. Above 12% is excellent. Below 6% may not justify the risk and effort of landlording.
How is cash-on-cash different from cap rate?
Cash-on-cash includes mortgage payments and measures return on YOUR cash. Cap rate excludes financing and measures the property's raw return.
Does cash-on-cash include appreciation?
No. CoC only measures annual cash flow return. Appreciation, tax benefits, and equity buildup are additional returns not captured here.
Can cash-on-cash return be negative?
Yes, if your annual expenses (including mortgage) exceed rental income. This means you are losing cash each year on the property.