Cash on Cash Return Calculator
Estimate how efficiently your real estate investment is producing cash flow compared to the cash you deployed.
Investment Inputs
Include down payment and closing costs.
Pre-tax net cash distribution per year.
Ratio of pre-tax cash flow to the cash you invested.
How to Use This Calculator
This calculator helps real estate investors understand the cash on cash return generated by their assets. Enter the total cash you invested—down payment, closing costs, and any immediate repairs—along with the annual cash flow the property produces.
Click "Calculate" to see the percentage that expresses how much cash you earn annually compared to the cash you put into the deal. The result updates immediately, and you can experiment with different cash flow assumptions to understand the sensitivity of your investment.
Methodology
All calculations are based on the standard cash on cash return formula: annual cash flow divided by total cash invested, multiplied by 100. Inputs are treated as annual values, and the tool enforces positive numbers to keep the ratio meaningful.
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
Results are estimates. Consult HUD.gov or a licensed advisor before making financing decisions.
Glossary
- Total Cash Invested: The total amount of cash invested in the property, including down payment, closing costs, and immediate repairs.
- Annual Cash Flow: The annual net income generated by the property after operating expenses.
- Cash on Cash Return: The ratio of annual pre-tax cash flow to the total cash invested, expressed as a percentage.
Example
If you invest $50,000 and receive an annual cash flow of $5,000, your cash on cash return is 10% because 5,000 ÷ 50,000 × 100 = 10.
Frequently Asked Questions
What is Cash on Cash Return?
It is a simple return metric that focuses only on the cash flows relative to the cash invested, without factoring appreciation or debt.
How is Cash on Cash Return different from ROI?
ROI includes appreciation and other non-cash benefits, while cash on cash return zeroes in on annual pre-tax cash distributions.
Why is Cash on Cash Return important?
It helps investors compare the immediate yield of competing properties before factoring in long-term appreciation.
Does Cash on Cash Return include debt?
No, it measures cash income relative to cash invested, so it ignores loan payments or interest.
What is a good Cash on Cash Return?
Markets differ, but a return above 8% is often considered strong depending on financing, location, and risk.