Calculate your cash-on-cash return on investment property. Accounts for mortgage, vacancy, expenses, and total cash invested.
Tax, insurance, mgmt, maintenance
Annual return on cash invested
After all expenses + mortgage
| Purchase Price | $300,000 |
| Down Payment (25%) | $75,000 |
| Closing Costs | $8,000 |
| Rehab Costs | $0 |
| Total Cash Invested | $83,000 |
| Monthly Rent Income | $2,200 |
| Vacancy (5%) | -$110 |
| Monthly Operating Expenses | -$600 |
| Monthly Mortgage Payment | -$1,497 |
| Monthly Cash Flow | -$7 |
| Annual Cash Flow | -$83 |
| Cash-on-Cash Return | -0.1002016504071347% |
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Cash-on-Cash Return = Annual Cash Flow ÷ Total Cash Invested × 100
Annual Cash Flow = (Rent × (1−Vacancy%) − Expenses − Mortgage) × 12
Total Cash Invested = Down Payment + Closing Costs + Rehab
8–12% CoC is generally strong for rental properties. Below 5% may not justify illiquidity vs. other investments. Over 15% is excellent but often involves higher risk or significant leverage.
Cap rate ignores financing and measures property-level return. Cash-on-cash measures your personal return on the actual cash you invested (down payment + closing costs), accounting for mortgage debt service.
Down payment + closing costs + rehab/renovation costs + reserves. This is the actual cash out of your pocket — not the total purchase price.
No. CoC measures only cash income return. Add expected appreciation for total return analysis. Many investors accept lower CoC in appreciating markets for total return.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.