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Cash-on-Cash Return Calculator

See the actual yield on the equity you put into a deal. Inputs reflect real-world cash flow, financing included, so the answer reflects what hits your bank account.

Your numbers

Numbers should reflect your actual annual cash flows.

Cash-on-cash return
16.67%Exceptional
Annual pre-tax cash flow
$20,000
Total cash invested
$120,000
Gross income
$60,000
Operating expenses
$18,000
Mortgage payment
$22,000
How this is calculated

CoC (%) = (Annual Pre-Tax Cash Flow ÷ Total Cash Invested) × 100

Pre-Tax Cash Flow = Gross Income − Operating Expenses − Mortgage

CoC measures the actual yield on the equity you put in. Unlike cap rate, it accounts for financing.

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FAQ

Common questions

What's a good cash-on-cash return?
Most leveraged single-asset deals target 8%–12% CoC. Anything below 6% is typically considered weak unless there's significant appreciation upside. Above 12% is exceptional and often signals either a value-add play or higher-risk exposure.
How is cash-on-cash different from cap rate?
Cap rate measures property-level yield with no financing, it answers 'how good is the asset?' Cash-on-cash measures the yield on your actual equity after the mortgage, it answers 'how good is this deal for me?' Two investors can buy the same property and get very different CoC returns.
Should I include closing costs and rehab in cash invested?
Yes. Total cash invested means every dollar that left your account: down payment, closing costs, inspection fees, and any rehab or stabilisation capex you funded out-of-pocket. Excluding these inflates your CoC and breaks the comparison to other deals.
Does cash-on-cash account for appreciation or principal paydown?
No, and that's by design. CoC measures only the cash hitting your bank account each year. Total return (which includes appreciation and equity build) is captured by the ROI calculator instead. Use both to get the full picture.
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