Calculate cash-on-cash return for real estate investments and properties
Enter your annual pre-tax cash flow and the total cash you invested in the property. The calculator divides annual cash flow by total cash invested and multiplies by 100 to show your cash-on-cash return as a percentage.
If you invested $100,000 and receive $12,000 in annual cash flow, your cash-on-cash return is 12% ($12,000 ÷ $100,000 × 100).
Most investors target 8-12% minimum. Higher returns (15%+) indicate excellent performance, while below 6% may not justify the risk and effort.
Cap rate measures property performance without financing. Cash-on-cash measures your actual return on invested cash, accounting for leverage.
No, it only measures annual cash flow divided by cash invested. Total return would also include appreciation, loan paydown, and tax benefits.