Cash on Cash Return

The Cash on Cash Return Calculator measures the annual pre-tax cash flow relative to the total cash you actually invested in a property — including down payment, closing costs, and renovation expenses. Unlike cap rate which ignores financing, cash-on-cash measures the return on your actual out-of-pocket investment. Enter the total cash invested, annual rental income, mortgage payments, and operating expenses. The calculator shows your annual cash flow and cash-on-cash return percentage, with a breakdown of income and expense components. This metric is critical for leveraged real estate investors because it shows how effectively your invested capital generates returns. A property with modest cap rate can deliver excellent cash-on-cash returns when leveraged appropriately, and vice versa.