💵 Returns
Cash-on-Cash
Return Calculator
Calculate your actual cash return on invested capital. The most honest measure of a leveraged real estate investment.
📅 Annual Cash Flow
Enter your
annual pre-tax cash flow — that's rent collected minus all expenses including mortgage. Use our
Rental Property Calculator to get this number.
Cash-on-Cash Return
11.25%
$7,200 annual CF ÷ $64,000 cash invested
Total Cash Invested
$64,000
Down + Closing + Rehab
Monthly Cash Flow
$600
Annual ÷ 12
Payback Period
8.9 yrs
Cash invested ÷ annual CF
Deal Grade
Good
vs investor benchmarks
CoC Benchmark Comparison
Excellent (12%+)—
Good (8–12%)—
Fair (5–8%)—
Poor (<5%)—
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Frequently Asked Questions
What is a good cash-on-cash return for rental property? ▾
Most real estate investors target a minimum of 8% cash-on-cash return. 10-15% is considered good. Below 6% is generally not worth the risk and hassle for most investors. However, CoC should be weighed against appreciation potential — a 5% CoC in a rapidly appreciating market may outperform a 12% CoC in a flat or declining one on total return.
How is cash-on-cash different from ROI? ▾
Cash-on-cash measures annual cash flow divided by cash invested — it's a pure cash yield metric. ROI (Return on Investment) typically includes all returns: appreciation, equity paydown, and cash flow. CoC is better for comparing cash-generating ability of deals. Total ROI is better for comparing long-term wealth building.
Should I include principal paydown in cash-on-cash? ▾
No — cash-on-cash is strictly pre-tax CASH flow divided by cash invested. Principal paydown builds equity but isn't cash in your pocket. Some investors calculate a 'total return' metric that adds equity paydown, but this is separate from CoC. Keep them separate to avoid confusing liquidity with paper gains.