Enter your annual income and expenses, yearly mortgage payments, and the total cash you put in. We compute annual pre-tax cash flow and your cash-on-cash return instantly.
This tool is provided for general educational and informational purposes only. It is not financial, tax, or investment advice and does not account for your specific situation. Confirm figures with your own analysis and a qualified professional before making decisions.
Cash-on-cash return measures the annual pre-tax cash flow a property produces divided by the actual cash you invested. Unlike cap rate, it accounts for your mortgage and how much leverage you used.
Cash-on-cash = annual pre-tax cash flow ÷ total cash invested × 100. Cash flow is income minus operating expenses minus mortgage payments; cash invested is your down payment plus closing costs and upfront repairs.
Many rental investors target 8–12%, but expectations vary by market, risk, and strategy. Compare it to other investments and to deals in your area rather than a single benchmark.
Cap rate ignores financing and measures the property’s unleveraged return. Cash-on-cash includes your mortgage and down payment, so it reflects the return on the actual cash you put in.
Free tool by Hatchkeep. Related: cap rate calculator · rental cash flow calculator · rental ROI calculator