Measure the annual return on the actual cash you put in. Enter monthly rent, expenses, mortgage and your total cash invested (deposit + closing + rehab).
Cash-on-cash = annual pre-tax cash flow ÷ total cash invested. Unlike cap rate, it accounts for your mortgage and only the cash you actually put in — the truest measure of a financed deal's return.
Cap rate ignores financing; cash-on-cash return measures the yield on the real cash you invested (down payment, closing costs, renovation). For a leveraged purchase it's the number that tells you how hard your money is working. Many investors target 8%+ cash-on-cash.
Many rental investors aim for 8–12% cash-on-cash, though it varies by market and risk. Higher leverage can raise CoC but also increases risk.
Your down payment plus closing costs, plus any upfront renovation or furnishing — every dollar of your own money in the deal.
Cash-on-cash looks only at annual cash flow vs cash in. Total ROI also adds appreciation and loan paydown, which this quick calculator doesn't include.
RentFlow keeps rent, costs and occupancy per unit so your real returns stay up to date. Free to start.
Get RentFlow — App StoreMore calculators: Rental Yield Calculator · Rental Cash Flow Calculator · Rent Increase Calculator & Legality Checker · Prorated Rent Calculator · Late Rent Fee Calculator · Mortgage Payment Calculator · 1% Rule Calculator · Security Deposit Calculator · Gross Rent Multiplier (GRM) Calculator · Net Operating Income (NOI) Calculator · Rent-to-Income Ratio Calculator · Vacancy Rate Calculator · Operating Expense Ratio (OER) Calculator
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