About this Cash-on-Cash Return Calculator
Cash-on-cash return shows annual pre-tax cash flow as a percentage of the actual cash invested. Unlike cap rate, it includes debt service and leverage.
Who this calculator is for
- Real estate investors comparing rental property scenarios.
- Landlords pressure-testing income, expense, and financing assumptions.
- Buyers and advisors who want transparent investment math from user-entered numbers.
When to use it
- Compare financed rental property scenarios.
- Estimate annual return on down payment, closing costs, and initial repairs.
- Measure how debt service changes investor-level cash yield.
How to use this calculator
- Enter annual rental income, other income, vacancy loss, and operating expenses.
- Enter annual debt service for principal and interest payments.
- Enter the total cash invested in the property.
- Review annual pre-tax cash flow and cash-on-cash return.
Key assumptions
- Cash flow is pre-tax and excludes depreciation, tax benefits, refinancing proceeds, sale proceeds, and income taxes.
- Cash invested is entered by the user and should include the upfront costs the investor wants in the denominator.
- All rents, expenses, rates, debt service, costs, appreciation, reserves, and investment amounts are entered by the user.
- Calculations run locally in your browser and are not stored by Calwarden.
- Results are estimates for planning and comparison only, not financial, tax, legal, lending, appraisal, or investment advice.
Accuracy and testing
Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.
How this calculator works
Inputs explained
Income and vacancy
Annual scheduled rent plus other income, reduced by expected vacancy or collection loss.
Operating expenses
Annual property operating costs before debt service.
Annual debt service
Total principal and interest payments for the year.
Cash invested
Down payment, closing costs, initial repairs, and other upfront cash contributed to the deal.
Understanding your results
Example scenarios
Leveraged rental
$29,500 NOI minus $21,600 annual debt service equals $7,900 pre-tax cash flow. With $120,000 cash invested, cash-on-cash return is about 6.6%.
Debt service pressure
If the annual debt service rises while NOI and cash invested stay the same, cash-on-cash return falls.
Key Features
- Instant Calculation
- Private & Secure
- Mobile Optimized
Tips & Best Practices
- Use annual debt service from your actual loan scenario rather than a generic rate assumption.
- Include initial repairs in cash invested if they are required to make the property rentable.
- Compare cash-on-cash with DSCR so investor return and lender coverage are both visible.
Glossary of Terms
- NOI
- Net operating income. Rental and other operating income minus vacancy loss and operating expenses, before debt service and income taxes.
- Debt service
- Principal and interest payments on financing. These are excluded from NOI but included in cash flow and DSCR analysis.
- Cash invested
- Cash contributed to acquire and prepare the property, such as down payment, closing costs, initial repairs, and other upfront costs.