Leveraged rental return
Measure annual pre-tax cash flow against the down payment, closing costs, and initial repairs actually funded with investor cash.
Decision question
What return does the invested cash produce?
This calculator provides estimates for planning and comparison, not financial, tax, investment, or lending advice.
Return on invested cash
Cash-on-cash return is a leveraged return measure. It changes when the income and expenses change, but also when the down payment, interest rate, loan term, or upfront cash changes.
Primary formula
Cash-on-cash return = Annual cash flow ÷ Initial cash investment × 100
Annual cash flow = NOI − annual debt service. Initial cash investment = down payment + closing costs + initial repairs.
Gross scheduled income annualizes rent and other monthly income. Vacancy reduces that amount. Property tax, insurance, HOA, utilities, other expenses, and the entered percentage allowances are then subtracted to estimate NOI. Mortgage payments are financing, not operating expenses.
Enter or revise the property, income, expense, and loan assumptions, then select Calculate Cash-on-Cash Return. Editing a field alone does not replace the last completed result. Reset restores the original example assumptions.
Leverage can raise or lower the percentage because it changes both the denominator and debt service. A negative result identifies negative modeled pre-tax cash flow; it does not quantify appreciation, income taxes, future sale proceeds, reserves, unentered lender fees, or unexpected repairs.
Questions
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