Cash-on-Cash Return Calculator

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

Our Cash-on-Cash Return Calculator helps you evaluate the profitability of a rental property based on the actual cash invested. This metric is crucial for real estate investors as it highlights the annual return generated by the cash you've put down, allowing for direct comparison against other investment opportunities. With projected stock market returns around 8.5% for 2026, understanding your property's cash-on-cash return is essential for making informed investment decisions.

The Cash-on-Cash Return is calculated by dividing the annual pre-tax cash flow by the total cash invested. Annual pre-tax cash flow is determined by taking your annual rental income and subtracting all operating expenses (like property taxes, insurance, and maintenance) and annual mortgage payments. The total cash invested includes your down payment, closing costs, and any initial renovation expenses.

When using this calculator, remember that it focuses on cash flow and doesn't account for property appreciation or tax benefits, which can significantly impact overall returns. A common mistake is forgetting to include all initial cash outlays, such as repair costs incurred before a tenant moves in. Always consider a buffer for unexpected expenses when estimating your operating costs.

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. Your total cash invested is $65,000.
  2. 2 Step 2: Calculate your annual cash flow. 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. Your annual pre-tax cash flow is $24,000 - $6,000 - $12,000 = $6,000.
  3. 3 Step 3: The calculator determines your Cash-on-Cash Return. Divide your annual cash flow of $6,000 by your total cash invested of $65,000. Your Cash-on-Cash Return is approximately 9.23%.
  4. 4 Step 4: Compare this return. A 9.23% Cash-on-Cash Return for 2026 looks favorable when compared to the projected 8.5% average stock market return, suggesting this rental property could be a strong investment. However, remember to factor in potential vacancies and unexpected repairs not accounted for in this simplified calculation.

Source: CFPB — Owning a Home · Last updated: April 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. Anything above 10% is considered strong in 2026 given current mortgage rates. 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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