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Cash-on-Cash Return Calculator for Rental Property

What do these figures come to once the work is shown?

Cash invested, annual debt service, annual cash flow, cash-on-cash return and debt service coverage from price, financing and NOI.

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  • Nothing stored or sent
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Your figures
Example figuresIllustrative only. Type over them with your own.
Cash-on-cash return
5.04%
Annual cash flow on cash you put in
Annual cash flow after debt service
$7,557
Cash invested
$150,000
Drawn to one scale
Annual cash flow after debt service$7,557
Cash invested$150,000
Loan amount$375,000
Annual debt service$28,443
All results
MeasureResult
Cash-on-cash return5.04%
Annual cash flow after debt service$7,557
Cash invested$150,000
Loan amount$375,000
Annual debt service$28,443
Debt service coverage ratio1.27
How this was worked out
Work shownrecomputed as you type
Loan = price x (1 - down payment %)
Debt service = 12 x level monthly payment on the loan
Cash-on-cash = (NOI - debt service) / (down payment + closing costs + rehab)

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Loan = price x (1 - down payment %)
  • Debt service = 12 x level monthly payment on the loan
  • Cash-on-cash = (NOI - debt service) / (down payment + closing costs + rehab)

How it works

Cash-on-cash return measures first-year pre-tax cash flow against the cash you invested. Unlike cap rate, it depends on financing, so a larger loan changes it.

It ignores principal paydown, appreciation, depreciation and tax. Use it with the DSCR row: lenders set a minimum DSCR, so NOI must cover debt service by a margin. Fixed-rate, fully amortizing loan assumed.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Why can cash-on-cash exceed the cap rate?

When the loan rate is below the cap rate, leverage lifts the return on equity.

Is principal paydown a return?

It builds equity but is not cash flow, so it is left out.

Should capital reserves be deducted?

If you reserve for them, subtract the reserve from NOI first.

Formulas on this page are the standard definitions.

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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