Cash-on-Cash Return Calculator

How it works

Cash-on-cash return = annual pre-tax cash flow ÷ total cash invested × 100. Cash flow = rent after vacancy − operating expenses − mortgage payments. Cash invested = down payment + closing and repair costs. The payment uses the standard amortized loan formula, P × r ÷ (1 − (1 + r)^−n). The figure ignores appreciation, loan paydown, and taxes. Example: Buying a $300,000 rental with 25 percent down, 6.5 percent interest over 30 years, and $9,000 of closing costs needs $84,000 in cash. With $2,400 rent and $7,200 of expenses it returns $3,094.16 a year, or 3.68 percent.

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