Cash-on-Cash Return Calculator
Cash-on-Cash Return Benchmarks
Example scenarios for a $300,000 rental property with 25% down
| Monthly Rent | Monthly Expenses | Annual Cash Flow | CoC Return |
|---|---|---|---|
| $1,800 | $1,700 | $1,200 | 1.3% |
| $2,000 | $1,700 | $3,600 | 4.0% |
| $2,200 | $1,700 | $6,000 | 6.7% |
| $2,400 | $1,700 | $8,400 | 9.3% |
| $2,600 | $1,700 | $10,800 | 12.0% |
| $2,800 | $1,700 | $13,200 | 14.7% |
| $3,000 | $1,700 | $15,600 | 17.3% |
How We Calculate This
This cash-on-cash return calculator uses established formulas and industry-standard data to provide accurate estimates.
- Enter your specific values into the calculator fields above
- Our algorithm applies the relevant formulas using your inputs
- Results are calculated instantly in your browser — nothing is sent to a server
- Review the detailed breakdown to understand how each factor affects your result
These calculations are estimates based on standard formulas. For critical decisions, always consult a qualified professional.
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Cash-on-cash (CoC) return measures the annual pre-tax cash flow relative to the total cash you invested — one of the most important metrics for rental property investors.
The basic rule:
- Formula: CoC Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
- Annual Cash Flow = (Monthly Rent − Monthly Expenses) × 12
- Total Cash Invested = Down Payment + Closing Costs + Rehab Costs
- A CoC return of 8-12% is generally considered good for rental properties
Unlike cap rate, cash-on-cash return accounts for financing and gives you a clear picture of the actual return on the cash you put into the deal. It does not account for appreciation, tax benefits, or principal paydown.
When Would You Use This Calculator?
This cash-on-cash return calculator is designed for anyone who needs quick, reliable estimates without complex spreadsheets or professional consultations.
- When you need a quick estimate before committing to a purchase or project
- When comparing different options or scenarios side by side
- When planning a budget and need to understand potential costs
- When you want to verify a quote or estimate you've received from a professional
- When teaching or learning about the concepts behind these calculations
Frequently Asked Questions
What is a good cash-on-cash return?
Most investors target 8-12% cash-on-cash return for rental properties. Above 12% is excellent, 8-12% is good, 5-8% is acceptable in high-appreciation markets, and below 5% may not justify the risk and effort of owning rental property.
What is the difference between cash-on-cash return and cap rate?
Cap rate = Net Operating Income / Purchase Price. It ignores financing. Cash-on-cash return = Cash Flow / Cash Invested. It accounts for your actual mortgage and out-of-pocket investment. CoC tells you what YOUR cash earns; cap rate evaluates the property itself.
What expenses should I include?
Include: mortgage payment (principal + interest), property taxes, insurance, property management (8-10% of rent), maintenance (5-10% of rent), vacancy reserve (5-8% of rent), HOA fees, and any utilities you pay. The more thorough, the more accurate your return.
Does cash-on-cash return account for appreciation?
No. Cash-on-cash return only measures annual cash flow return. It does not include property appreciation, tax benefits (depreciation), or equity buildup through mortgage paydown. The total return on a rental property is usually higher than the CoC return alone.
How does leverage affect cash-on-cash return?
Leverage (using a mortgage) can significantly increase CoC return. For example, buying a $300K property all-cash might yield 6% CoC, but putting 25% down and financing the rest could yield 10-15% CoC — because you invested less cash for a similar cash flow.
Should I include rehab costs in total cash invested?
Yes. Any cash you spend to acquire and prepare the property for rental should be included: down payment, closing costs, rehab/repairs, furnishing (for furnished rentals), and any other upfront costs. This gives you the true return on all cash deployed.