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

    USD
    USD

    Cash paid toward the purchase price.

    USD
    USD
    USD

    Cash held back for future property needs.

    Rental income

    USD
    %
    USD

    Exclude mortgage debt service. Include owner-paid recurring costs and reserves you want to test.

    USD

    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.

    73%9%16%

    Distribution

    • Cash invested
      $86,000.00
      73.2%
    • Operating expenses
      $10,200.00
      8.7%
    • Debt service
      $19,200.00
      16.3%
    • Cash shortfall
      $2,040.00
      1.7%

    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
    Result ready

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    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

    1. 1Effective annual rent = monthly rent × 12 × (1 − vacancy rate ÷ 100).
    2. 2Annual operating expenses = monthly operating expenses × 12.
    3. 3Annual debt service = monthly mortgage payment × 12.
    4. 4Annual pre-tax cash flow = effective rent − operating expenses − debt service.
    5. 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.

    Calculator model reviewed: August 9, 2026

    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.

    Total cash invested is $86,000. Effective annual rent is $27,360, annual operating expenses are $10,200, and annual debt service is $19,200. Pre-tax cash flow is negative $2,040, producing a cash-on-cash return of about negative 2.37%.

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