Cash-on-cash return calculator
Measure a rental property’s yearly cash flow against the cash you put in. Also shows cap rate and net operating income, so you can compare deals quickly.
Rental numbers
Vacancy, repairs and management are a percentage of rent. Set the down payment to 100% for an all-cash purchase.
An estimate only. Taxes, insurance and rents vary by property.
How cash-on-cash return is calculated
Annual cash flow = (rent − operating expenses − loan payment) × 12
Cap rate = net operating income ÷ purchase price
Cash-on-cash tells you what your own money earns each year. Cap rate ignores financing, so it is better for comparing properties against each other. Use both: a property with a decent cap rate can still have weak cash-on-cash if the loan is expensive.
What is a good cash-on-cash return?
There is no single right number. It depends on the market, the risk of the property and what else you could do with the money. Higher mortgage rates in 2026 have squeezed returns on financed rentals, which is one reason more investors use creative financing such as seller financing or subject-to.
Frequently asked questions
Does cash-on-cash include appreciation or loan paydown?
No. It only measures cash flow. Total return also counts principal paydown, appreciation and tax effects.
Should I include upfront repairs in cash invested?
Yes. Any cash you put in to get the property rented belongs in the total.
Where do good rental deals come from?
Often from wholesalers. Landlords buy many of the deals wholesalers find. See how wholesaling works and the BRRRR calculator.
Get the full deal analyzer
The free kit includes our spreadsheet analyzer, starter contracts and seller script.