{
  "id": "cash-on-cash-return",
  "version": "5524e51043ab",
  "status": "published",
  "name": "Cash on Cash Return Calculator",
  "question": "What is my cash on cash return?",
  "summary": "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).",
  "category": "finance",
  "subcategory": "investing",
  "url": "https://www.acalculator.org/finance/cash-on-cash-return-calculator",
  "markdown": "https://www.acalculator.org/finance/cash-on-cash-return-calculator.md",
  "kind": "function",
  "method": "Cash on cash return = (12 × rent × (1 − vacancy) − 12 × expenses − 12 × loan payment) ÷ (down payment + closing costs + repairs) × 100.",
  "assumptions": [
    "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."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "price": {
        "title": "Purchase price",
        "description": "What you pay for the property.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      },
      "down": {
        "title": "Down payment",
        "description": "The cash you pay toward the price; the rest is borrowed.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      },
      "close": {
        "title": "Closing costs",
        "description": "Cash paid at closing: fees, points, title, inspections.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      },
      "fix": {
        "title": "Repairs before renting",
        "description": "Cash spent to make the property ready to rent.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      },
      "rent": {
        "title": "Rent per month",
        "description": "The rent the property earns each month when it is let.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      },
      "vac": {
        "title": "Vacancy",
        "description": "The share of the year the property is expected to sit empty.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 100
      },
      "exp": {
        "title": "Operating expenses per month",
        "description": "Property taxes, insurance, maintenance, management, HOA and utilities you pay; not the loan.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      },
      "loan": {
        "title": "Loan payment",
        "description": "Work out the monthly loan payment from the rate and term, or type the payment.",
        "type": "string",
        "enum": [
          "calc",
          "known"
        ]
      },
      "rate": {
        "title": "Loan interest rate",
        "description": "The yearly interest rate of the loan; the monthly rate is this ÷ 12.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 50
      },
      "term": {
        "title": "Loan term (years)",
        "description": "How many years of monthly payments.",
        "type": "integer",
        "minimum": 1,
        "maximum": 50
      },
      "pmt": {
        "title": "Monthly loan payment",
        "description": "Principal and interest paid each month.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      }
    }
  },
  "outputs": {
    "coc": {
      "label": "Cash on cash return",
      "description": "Annual cash flow ÷ total cash invested × 100.",
      "format": "percent"
    },
    "cashFlow": {
      "label": "Annual cash flow",
      "description": "Net operating income − loan payments for the year.",
      "format": "money"
    },
    "monthly": {
      "label": "Monthly cash flow",
      "description": "Annual cash flow ÷ 12.",
      "format": "money"
    },
    "invested": {
      "label": "Total cash invested",
      "description": "Down payment + closing costs + repairs.",
      "format": "money"
    },
    "noi": {
      "label": "Net operating income",
      "description": "Rent for the year after vacancy − operating expenses for the year.",
      "format": "money"
    },
    "debt": {
      "label": "Loan payments a year",
      "description": "The monthly loan payment × 12.",
      "format": "money"
    },
    "payment": {
      "label": "Monthly loan payment",
      "description": "The level payment on the loan, or the payment you typed.",
      "format": "money"
    },
    "loanAmount": {
      "label": "Loan amount",
      "description": "Purchase price − down payment.",
      "format": "money"
    },
    "capRate": {
      "label": "Cap rate",
      "description": "Net operating income ÷ purchase price × 100, the return with no loan and no closing costs.",
      "format": "percent"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "price": 300000,
      "down": 60000,
      "close": 9000,
      "fix": 0,
      "rent": 2500,
      "vac": 5,
      "exp": 700,
      "loan": "calc",
      "rate": 7,
      "term": 30,
      "pmt": 1600
    },
    "outputs": {
      "coc": 1.3612871577384424,
      "cashFlow": 939.2881388395253,
      "monthly": 78.27401156996045,
      "invested": 69000,
      "noi": 20100,
      "debt": 19160.711861160475,
      "payment": 1596.7259884300395,
      "loanAmount": 240000,
      "capRate": 6.7
    },
    "text": "Your cash on cash return is 1.36%: $939.29 a year on $69,000.00 of cash invested."
  },
  "examples": [
    {
      "given": {
        "price": 1200000,
        "down": 300000,
        "rent": 5000,
        "vac": 0,
        "exp": 0,
        "loan": "known",
        "pmt": 2000
      },
      "expect": {
        "coc": 12,
        "cashFlow": 36000,
        "noi": 60000,
        "invested": 300000
      },
      "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)"
    },
    {
      "given": {
        "price": 200000,
        "down": 200000,
        "close": 5000,
        "rent": 1800,
        "vac": 0,
        "exp": 500,
        "loan": "calc",
        "rate": 7,
        "term": 30
      },
      "expect": {
        "coc": 7.609756097560975,
        "cashFlow": 15600,
        "pmt": 0,
        "capRate": 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); hand calculation in content.mdx: 12 × (1,800 − 500) = 15,600 ÷ 205,000 = 7.61%"
    },
    {
      "given": {
        "price": 300000,
        "down": 60000,
        "close": 9000,
        "rent": 2500,
        "vac": 5,
        "exp": 700,
        "loan": "calc",
        "rate": 7,
        "term": 30
      },
      "expect": {
        "pmt": 1596.7259884300377,
        "noi": 20100,
        "cashFlow": 939.2881388395472,
        "coc": 1.3612871577384742,
        "capRate": 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); hand calculation in content.mdx: payment on $240,000 at 7% for 30 years = $1,596.73; NOI = 30,000 × 0.95 − 8,400 = 20,100; cash flow 20,100 − 19,160.71 = 939.29 ÷ 69,000 = 1.36%"
    },
    {
      "given": {
        "price": 150000,
        "down": 30000,
        "close": 4000,
        "fix": 6000,
        "rent": 1600,
        "vac": 8,
        "exp": 450,
        "loan": "calc",
        "rate": 6.5,
        "term": 30
      },
      "expect": {
        "pmt": 758.4816281915583,
        "cashFlow": 3162.2204617012994,
        "coc": 7.905551154253248
      },
      "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); hand calculation in content.mdx: payment on $120,000 at 6.5% for 30 years = $758.48; NOI = 19,200 × 0.92 − 5,400 = 12,264; cash flow 3,162.22 ÷ 40,000 = 7.91%"
    }
  ],
  "sources": [
    "Cash on cash return, Wikipedia (the ratio of annual before-tax cash flow to the total amount of cash invested, expressed as a percentage; worked example: $300,000 down, $5,000 a month after expenses, $2,000 a month of mortgage payments, $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 expenses: advertising, cleaning and maintenance, insurance, mortgage interest, property taxes, repairs, utilities, management fees, depreciation). https://www.irs.gov/publications/p527 (retrieved 2026-10-02)",
    "Mortgage calculator, Wikipedia (the fixed monthly payment c = rP ÷ (1 − (1 + r)^−N) for a loan P at monthly rate r over N payments). https://en.wikipedia.org/wiki/Mortgage_calculator (retrieved 2026-10-02)"
  ],
  "related": [
    "cap-rate",
    "rental-property",
    "roi",
    "mortgage"
  ],
  "changelog": []
}