Cash-on-Cash Return Calculator
Cash-on-cash return is your annual pre-tax cash flow divided by the actual cash you put in (down payment + closing + rehab). Unlike cap rate, it reflects your financing — it's the number that tells you what your invested dollars actually earn in year one.
Cash-on-cash return
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Many buy-and-hold investors target 8%+ cash-on-cash; below ~5% the deal is leaning on appreciation, not cash flow.
FAQ
What's a good cash-on-cash return?
8%+ is a common target for cash-flow investors. Below 5% means you're betting on appreciation or rent growth rather than current income.
Cash-on-cash vs cap rate?
Cap rate ignores your loan (unleveraged yield); cash-on-cash includes it (your actual return on cash in). Use both — cap rate to compare deals, cash-on-cash to judge your own return.