Cash-on-Cash Return Calculator
Cash-on-cash return compares the cash a property produces each year with the cash you put into it. It is a simple percentage that leaves out the loan balance and any change in value.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Take the year's cash flow after operating costs and loan payments, before income tax. Divide that by all the cash you invested, including the down payment and closing costs. Multiply by 100 for the percentage.
Cash invested should include every up-front cost you paid in cash. Income tax is not counted, so the result is a pre-tax figure.
Worked example
With $6,000.00 of yearly cash flow after costs and $60,000.00 of cash put in, the cash-on-cash return is 10%.
Questions
Does this include appreciation?
No. It counts only the cash that arrives each year. Growth in the property's value is left out.
What counts as cash invested?
The down payment, closing costs and any repairs paid for in cash at the start. Borrowed money is not part of it.
Why is it pre-tax?
Tax depends on each person's situation and on rules that change. A pre-tax figure keeps the comparison simple, and an accountant can work out the after-tax number.
More like this
- Investment Return CalculatorTotal return and yearly rate from a start and end value.
- Investment CalculatorGrowth from a start amount and monthly deposits.
- Retirement CalculatorProjected savings from a balance, yearly saving and a return.
- 401k CalculatorBalance with pay, your share, employer match and return.
- Dividend CalculatorDividend yield and yearly income from a stock.
- Commercial Mortgage CalculatorMonthly payment, balloon balance and interest on a commercial loan.