Cash-on-Cash Return Calculator
See how the cash you put into a rental compares with its annual pre-tax cash flow. Add the down payment, closing costs, repairs, reserves, rent, vacancy, operating expenses, and mortgage payment to keep this focused return measure transparent.
Best for
Make the next pricing or planning decision with context
Test refunds, returns, or reserve assumptions before you rely on the property scenario's margin. It covers Measure annual pre-tax rental cash flow against the cash invested in a property purchase.
Instant calculations · Editable fee assumptions · Export-ready results
Inputs
Values update results instantly. Adjust fee assumptions to match your seller dashboard.
Your figures are saved in this browser on this device.
Acquisition
Cash paid toward the purchase price.
Cash held back for future property needs.
Rental income
Exclude mortgage debt service. Include owner-paid recurring costs and reserves you want to test.
Debt service used for this cash flow view.
Results
Live estimates based on your inputs and editable fee assumptions.
Total cash invested
$86,000.00
Cash tied up at purchase and setup.
Effective annual rental income
$27,360.00
Rent after vacancy allowance.
Annual operating expenses
$10,200.00
Operating costs before debt service.
Annual debt service
$19,200.00
Monthly mortgage payment multiplied by 12.
Annual pre-tax cash flow
-$2,040.00
Income less operating costs and debt service.
Cash-on-cash return
-2.4%
Annual pre-tax cash flow divided by cash invested.
Gross rent yield
9.6%
Annual scheduled rent as a share of purchase price.
What this means
This scenario produces -$2,040.00 of annual pre-tax cash flow on $86,000.00 invested, or -2.37% cash-on-cash return. Cap rate would exclude debt service.
Cash invested and annual rental result
Interactive breakdown of fees, costs, and remaining profit.
Distribution
- Cash invested$86,000.0073.2%
- Operating expenses$10,200.008.7%
- Debt service$19,200.0016.3%
- Cash shortfall$2,040.001.7%
Total $117,440.00 · 4 segments · interactive
Line-item breakdown
Dollar amounts, share of revenue, and visual proportion.
- Total cash invested
- $86,000.00
- Effective annual rent
- $27,360.00
- Annual operating expenses
- $10,200.00
- Annual debt service
- $19,200.00
- Annual pre-tax cash flow
- -$2,040.00
- Cash-on-cash return
- -2.4%
- Gross rent yield
- 9.6%
Assumptions used
- • Cash invested $86,000.00 includes down payment, closing, repairs, and reserves
- • Vacancy 5.0% of scheduled rent
- • Principal paydown, appreciation, taxes, and sale proceeds are excluded
Your next best moves
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Explore Real Estate InvestingCash-on-Cash Return Calculator
Generated 9/11/2026, 9:08:14 AM · Currency USD
Inputs
- Purchase price: 300000
- Down payment: 60000
- Closing costs: 8000
- Upfront repairs: 12000
- Initial reserves: 6000
- Monthly rent: 2400
- Vacancy rate: 5
- Monthly operating expenses: 850
- Monthly mortgage payment: 1600
Results
- Total cash invested: $86,000.00
- Effective annual rent: $27,360.00
- Annual operating expenses: $10,200.00
- Annual debt service: $19,200.00
- Annual pre-tax cash flow: -$2,040.00
- Cash-on-cash return: -2.4%
- Gross rent yield: 9.6%
Interpretation
This scenario produces -$2,040.00 of annual pre-tax cash flow on $86,000.00 invested, or -2.37% cash-on-cash return. Cap rate would exclude debt service.
How it works
Methodology & formulas
This calculator is transparent by design. Review the steps and formulas so you can trust the estimate and adjust assumptions when your dashboard differs.
Calculation steps
- 1Effective annual rent = monthly rent × 12 × (1 − vacancy rate ÷ 100).
- 2Annual operating expenses = monthly operating expenses × 12.
- 3Annual debt service = monthly mortgage payment × 12.
- 4Annual pre-tax cash flow = effective rent − operating expenses − debt service.
- 5Cash-on-cash return = annual pre-tax cash flow ÷ total cash invested × 100.
Formulas
- Cash invested = down payment + closing costs + repairs + reserves
- Effective rent = rent × 12 × (1 − vacancy%)
- Annual cash flow = effective rent − annual operating expenses − annual debt service
- CoC return = annual cash flow ÷ cash invested × 100
- Gross yield = monthly rent × 12 ÷ purchase price × 100
Important assumptions
- Total cash invested equals down payment, closing costs, upfront repairs, and initial reserves.
- Operating expenses exclude mortgage debt service. Debt service is shown separately.
- Cash-on-cash return uses annual pre-tax cash flow divided by total cash invested.
- This focused measure excludes principal paydown, appreciation, taxes, and sale proceeds.
- Results are educational estimates, not legal, tax, lending, appraisal, or investment advice.
Sources & review
Know what this estimate is built on
This calculator is intentionally platform-agnostic, so it does not attach a platform fee URL.
Official references
No single official fee page is attached here. The model keeps these inputs editable so you can use the terms that apply to your situation.
Use the current terms
This model uses editable planning assumptions. Confirm tax, payment, financing, or operating terms with the relevant provider, official authority, or adviser for your situation.
Defaults are editable estimates. Match them to your current account, provider statement, official authority, lender, or adviser before making a pricing or investment decision.
Calculator model reviewed: August 9, 2026. This date covers the page and calculator guidance, not a guarantee that every live platform rate or term was re-audited on that date.
Worked example
Cash invested in a rental
$60,000 down, $8,000 closing costs, $12,000 repairs, $6,000 reserves, $2,400 monthly rent, 5% vacancy, $850 operating costs, and $1,600 mortgage payment.
FAQ
Common questions
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