acalculator

What is my cash on cash return?

Type the price, your down payment and closing costs, the rent, vacancy, operating expenses and the loan. The cash on cash return calculator gives your yearly before-tax cash flow and divides it by the cash you put in, with the net operating income, loan payment and cap rate.

Your numbers

Loan payment
Cash on cash return
1.36%

Your cash on cash return is 1.36%: $939.29 a year on $69,000.00 of cash invested.

Annual cash flow
$939.29
Monthly cash flow
$78.27
Total cash invested
$69,000.00
Net operating income
$20,100.00
Loan payments a year
$19,160.71
Monthly loan payment
$1,596.73
Loan amount
$240,000.00
Cap rate
6.7%

Cash on cash return: 1.36%. Your cash on cash return is 1.36%: $939.29 a year on $69,000.00 of cash invested.

The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use

How to calculate

Works out the cash on cash return of a rental property: the yearly cash flow after expenses and loan payments, divided by the cash you put in (down payment, closing costs and repairs).

Example with the default inputs (Purchase price $300,000.00, Down payment $60,000.00, Closing costs $9,000.00, Repairs before renting $0.00, Rent per month $2,500.00, Vacancy 5%, Operating expenses per month $700.00, Loan payment Work it out, Loan interest rate 7%, Loan term (years) 30): Your cash on cash return is 1.36%: $939.29 a year on $69,000.00 of cash invested.

Method: Cash on cash return = (12 × rent × (1 − vacancy) − 12 × expenses − 12 × loan payment) ÷ (down payment + closing costs + repairs) × 100.

  • Before tax: income tax and depreciation are left out.
  • The loan is price − down payment, repaid in level monthly payments at the yearly rate ÷ 12.
  • Rent, vacancy and expenses are the same every month of the first year.

Machine-readable copies: Markdown, JSON.

Worked examples

Each example is checked against the calculator on every build.

  1. Purchase price $1,200,000.00, Down payment $300,000.00, Rent per month $5,000.00, Vacancy 0%, Operating expenses per month $0.00, Loan payment I know it, Monthly loan payment $2,000.00 gives Cash on cash return 12%, Annual cash flow $36,000.00, Net operating income $60,000.00, Total cash invested $300,000.00.Source: Cash on cash return, Wikipedia (the ratio of annual before-tax cash flow to the total amount of cash invested, as a percent; example: $300,000 down, $5,000 a month of cash flow after expenses less $2,000 a month of mortgage payments gives $36,000 ÷ $300,000 = 12%), https://en.wikipedia.org/wiki/Cash_on_cash_return (retrieved 2026-10-02)
  2. Purchase price $200,000.00, Down payment $200,000.00, Closing costs $5,000.00, Rent per month $1,800.00, Vacancy 0%, Operating expenses per month $500.00, Loan payment Work it out, Loan interest rate 7%, Loan term (years) 30 gives Cash on cash return 7.609756%, Annual cash flow $15,600.00, Monthly loan payment $0.00, Cap rate 7.8%.Source: Cash on cash return, Wikipedia (the ratio of annual before-tax cash flow to the total amount of cash invested, as a percent; example: $300,000 down, $5,000 a month of cash flow after expenses less $2,000 a month of mortgage payments gives $36,000 ÷ $300,000 = 12%), https://en.wikipedia.org/wiki/Cash_on_cash_return (retrieved 2026-10-02); IRS, Publication 527 (2025), Residential Rental Property (rental income and rental expenses such as insurance, property taxes, repairs and maintenance, management fees and mortgage interest), https://www.irs.gov/publications/p527 (retrieved 2026-10-02)
  3. Purchase price $300,000.00, Down payment $60,000.00, Closing costs $9,000.00, Rent per month $2,500.00, Vacancy 5%, Operating expenses per month $700.00, Loan payment Work it out, Loan interest rate 7%, Loan term (years) 30 gives Monthly loan payment $1,596.73, Net operating income $20,100.00, Annual cash flow $939.29, Cash on cash return 1.361287%, Cap rate 6.7%.Source: Mortgage calculator, Wikipedia (monthly payment c = rP ÷ (1 − (1 + r)^−N) for principal P, monthly rate r and N payments), https://en.wikipedia.org/wiki/Mortgage_calculator (retrieved 2026-10-02); Cash on cash return, Wikipedia (the ratio of annual before-tax cash flow to the total amount of cash invested, as a percent; example: $300,000 down, $5,000 a month of cash flow after expenses less $2,000 a month of mortgage payments gives $36,000 ÷ $300,000 = 12%), https://en.wikipedia.org/wiki/Cash_on_cash_return (retrieved 2026-10-02)
  4. Purchase price $150,000.00, Down payment $30,000.00, Closing costs $4,000.00, Repairs before renting $6,000.00, Rent per month $1,600.00, Vacancy 8%, Operating expenses per month $450.00, Loan payment Work it out, Loan interest rate 6.5%, Loan term (years) 30 gives Monthly loan payment $758.48, Annual cash flow $3,162.22, Cash on cash return 7.905551%.Source: Mortgage calculator, Wikipedia (monthly payment c = rP ÷ (1 − (1 + r)^−N) for principal P, monthly rate r and N payments), https://en.wikipedia.org/wiki/Mortgage_calculator (retrieved 2026-10-02); IRS, Publication 527 (2025), Residential Rental Property (rental income and rental expenses such as insurance, property taxes, repairs and maintenance, management fees and mortgage interest), https://www.irs.gov/publications/p527 (retrieved 2026-10-02)

How it works

  1. Cash invested = down payment + closing costs + repairs.
  2. Loan amount P = purchase price − down payment.
  3. Monthly loan payment: the one you type, or the level payment c = P × r ÷ (1 − (1 + r)^−N) with r = yearly rate ÷ 12 ÷ 100 and N = 12 × term in years (c = P ÷ N at 0%; c = 0 when P is 0).
  4. Net operating income NOI = 12 × rent × (1 − vacancy ÷ 100) − 12 × operating expenses.
  5. Annual cash flow = NOI − 12 × monthly loan payment; monthly cash flow = annual ÷ 12.
  6. Cash on cash return = annual cash flow ÷ cash invested × 100%.
  7. Cap rate = NOI ÷ purchase price × 100% (left out when the price is $0).

A negative cash flow gives a negative return: the property costs you money each year.

Rules

  • Money amounts are $0 to $10 billion; vacancy 0% to 100%; the rate 0% to 50%; the term 1 to 50 whole years.
  • The down payment may not be more than the price, and cash invested must be above $0; otherwise there is no answer. A return beyond about 1.8 × 10³⁰⁸ percent (cash invested of a tiny fraction of a cent) has no answer either, and a cap rate that large is left out.
  • Before tax and for the first year: no income tax, depreciation, rent growth or appreciation.

Output format. Money in dollars and cents; the return and cap rate as percents with 2 decimals.

Worked examples by hand

Wikipedia's apartment complex. $300,000 down; $5,000 a month after expenses, so NOI = $60,000; loan payments $2,000 × 12 = $24,000. Cash flow = $36,000; 36,000 ÷ 300,000 = 12%.

All cash: $200,000 price, $5,000 closing. No loan. NOI = 12 × (1,800 − 500) = $15,600 = cash flow. Cash invested $205,000. Return = 7.61%; cap rate 15,600 ÷ 200,000 = 7.8%.

$300,000 with 20% down, 7% for 30 years. Loan $240,000; r = 0.07 ÷ 12; payment = $1,596.73, $19,160.71 a year. NOI = 30,000 × 0.95 − 8,400 = $20,100. Cash flow = $939.29. Cash invested 60,000 + 9,000 = $69,000. Return = 1.36%; cap rate 6.7%.

$150,000 with $30,000 down, $4,000 closing, $6,000 repairs, 6.5% for 30 years. Loan $120,000; payment $758.48. NOI = 19,200 × 0.92 − 5,400 = $12,264. Cash flow = 12,264 − 9,101.78 = $3,162.22. Return = 3,162.22 ÷ 40,000 = 7.91%.

Other questions people ask

What is cash on cash return?

The yearly before-tax cash flow of a property divided by the cash you invested in it, as a percent. It tells you what your own money earns each year, after the loan is paid.

How do I calculate cash on cash return?

Take the rent for the year, less vacancy and operating expenses, less the loan payments: that is the annual cash flow. Divide by your cash invested (down payment, closing costs, repairs) and multiply by 100. $36,000 of cash flow on $300,000 invested is 12%.

What is a good cash on cash return?

There is no single good number. Compare it with what the same cash would earn elsewhere, such as a savings account or bonds, and with the risk and work of owning the rental. A higher loan raises the return on your cash but also the risk.

How is it different from the cap rate?

The cap rate is net operating income ÷ the price, as if you paid all cash, so it ignores the loan. Cash on cash return counts the loan payments and only the cash you put in. With no loan and no closing costs, the two are equal.

Are loan payments an operating expense?

No. Operating expenses are the costs of running the property: taxes, insurance, repairs and maintenance, management and utilities. Loan payments come off after net operating income, so this page asks for them separately.

Does cash on cash return include taxes?

No, it is a before-tax measure. Income tax, depreciation and the tax deduction for mortgage interest are left out. IRS Publication 527 explains how rental income and expenses are taxed.