Quick answer
Cash-on-cash return = annual pre-tax cash flow ÷ total cash invested × 100. $6,000 of annual cash flow on $60,000 invested is a 10% return.
Enter the annual pre-tax cash flow and the total cash invested. The calculator returns the cash-on-cash return.
Related tools: Average Return Calculator: Arithmetic and geometric average of periodic returns. Portfolio Return Calculator: Weighted return of a portfolio from asset weights and returns. Discounted Cash Flow Calculator: Value of projected cash flows plus a terminal value.
How to use the Cash on Cash Return Calculator
- Enter annual pre-tax cash flow ($).
- Enter total cash invested ($) (above 0).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Annual pre-tax cash flow | A number, in $ | — |
| Total cash invested | A number, in $ | > 0 |
Formula and method
Formula
cash-on-cash = annual cash flow ÷ cash invested × 100
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Cash invested includes the down payment, closing costs and upfront repairs.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Annual pre-tax cash flow = 6000; Total cash invested = 60000.
| Result | Value |
|---|---|
| Cash-on-cash return | 10% |
Example 2
Inputs: Annual pre-tax cash flow = -1200; Total cash invested = 40000.
| Result | Value |
|---|---|
| Cash-on-cash return | -3% |
The first line is the headline result (cash-on-cash return). IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
What counts as cash invested
Down payment, closing costs and initial repairs: the money actually paid out of pocket. Annual cash flow is rent minus operating costs and debt service.
Versus cap rate
Unlike the cap rate, the cash-on-cash return reflects leverage and financing. A negative cash flow gives a negative return. It excludes appreciation and principal repayment.
How the result changes with annual pre-tax cash flow
Holding every other input at the first worked example, this table changes only annual pre-tax cash flow. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Annual pre-tax cash flow | Cash-on-cash return |
|---|---|
| 3000 | 5% |
| 6000 | 10% |
| 12000 | 20% |
| 24000 | 40% |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Total cash invested: entering "0" shows "Total cash invested must be greater than 0." beside that field and no result.
- Annual pre-tax cash flow: left empty shows "Enter annual pre-tax cash flow." beside that field and no result.
Choosing between the Cash on Cash Return Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Average Return Calculator](/finance/average-return-calculator/) | returns per period | Geometric average return |
| [Portfolio Return Calculator](/finance/portfolio-return-calculator/) | weights and return of each asset | Portfolio return |
| [Discounted Cash Flow Calculator](/finance/discounted-cash-flow-calculator/) | projected cash flows, discount rate and terminal growth rate | Enterprise value |
| [Rental Property Calculator](/real-estate/rental-property-calculator/) | purchase price, down payment and mortgage rate | Annual cash flow |
| [Cap Rate Calculator](/real-estate/cap-rate-calculator/) | net operating income and property value | Cap rate |
Background: rental property metrics
Rental property metrics answer different questions. The cap rate is net operating income divided by the purchase price and ignores financing; cash flow is income minus operating expenses minus debt service; cash-on-cash return divides annual cash flow by the cash you actually invested. Rules of thumb such as the 1% rule (monthly rent at least 1% of the price) are quick screens, not decisions.
Check the assumptions behind any result: vacancy, management fees, repairs and taxes. Published benchmark ranges for a good cap rate or return vary between sources.
Assumptions and limitations
- Negative cash flow gives a negative return
Estimates only. Taxes, fees and lender or authority rules vary by place and date, so confirm figures with the relevant authority or professional.
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for total cash invested and annual pre-tax cash flow to confirm this.
Frequently asked questions
What is a good cash-on-cash return?
8 to 12% is often cited.
Does it include taxes?
No, it is pre-tax: depreciation benefits and income tax would change the after-tax return.
How is it related to ROI?
Cash-on-cash looks only at annual cash flow on invested cash; ROI also counts appreciation, principal paydown and costs.
What does the Cash on Cash Return Calculator calculate?
Annual pre-tax cash flow relative to the cash you invested. It returns Cash-on-cash return.
What formula does the Cash on Cash Return Calculator use?
cash-on-cash = annual cash flow ÷ cash invested × 100. Cash invested includes the down payment, closing costs and upfront repairs.
What do I need to enter in the cash on Cash Return Calculator?
You enter Annual pre-tax cash flow ($) and Total cash invested ($).
How is the result rounded or limited?
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice. Negative cash flow gives a negative return.
What is an example of a cash on Cash Return result?
With annual pre-tax cash flow 6000 and total cash invested 60000, the cash-on-cash return is 10%.
Can I rely on this calculator for a decision?
Estimates only. Taxes, fees and lender or authority rules vary by place and date, so confirm figures with the relevant authority or professional. For this calculator in particular: Negative cash flow gives a negative return.
Related calculators
- Average Return Calculator — Arithmetic and geometric average of periodic returns.
- Portfolio Return Calculator — Weighted return of a portfolio from asset weights and returns.
- Discounted Cash Flow Calculator — Value of projected cash flows plus a terminal value.
- Rental Property Calculator — Cash flow, cap rate and cash-on-cash return of a rental.
- Cap Rate Calculator — Capitalization rate of an income property.
- House Flipping Profit Calculator — Profit and return on cost of a renovate-and-sell project.
Sources
- Standard time-value-of-money relations (e.g. Brealey, Myers & Allen, Principles of Corporate Finance)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.