Cash-on-Cash Return Calculator
Estimate annual cash-on-cash return from rental cash flow and the cash you actually invested.
Calculation breakdown
Cash-on-cash return vs cap rate
Cash-on-cash return measures the annual pre-tax cash flow you receive relative to the cash you invested. Unlike cap rate, it includes debt service, so financing choices can materially change the result.
It does not capture appreciation, principal paydown, depreciation benefits or future sale proceeds, so it is one view of investment performance rather than a complete return measure.
Frequently asked questions
Does cash-on-cash return include appreciation?
No. It focuses on annual pre-tax cash flow relative to cash invested.
Should mortgage payments be included?
Yes. Annual debt service is deducted when calculating cash flow.
Why can cap rate and cash-on-cash return differ?
Cap rate ignores financing, while cash-on-cash return incorporates debt service and the amount of cash invested.
Results are estimates for informational purposes only. Verify important financial, tax, real-estate or investment decisions with a qualified professional.