Cash-on-Cash Return Calculator
Measure the actual return on the cash you put into a rental — down payment, closing costs, and rehab — after the mortgage is paid. The metric most landlords actually care about.
| Down Payment (25%) | $75,000 |
| Closing Costs | $6,000 |
| Initial Rehab | $5,000 |
| Total Cash Invested | $86,000 |
| Loan Amount | $225,000 |
| Monthly Mortgage (P&I) | $1,497 |
| Gross Annual Income | $28,800 |
| Vacancy Loss (5%) | - $1,440 |
| Effective Gross Income | $27,360 |
| Operating Expenses | - $9,680 |
| Net Operating Income (NOI) | $17,680 |
| Annual Debt Service | - $17,963 |
| Annual Cash Flow | -$283 |
| Year | Cash Flow | Cumulative | CoC % |
|---|---|---|---|
| Year 1 | -$283 | -$283 | -0.33% |
| Year 2 | $296 | $12 | 0.34% |
| Year 3 | $893 | $905 | 1.04% |
| Year 4 | $1,510 | $2,415 | 1.76% |
| Year 5 | $2,146 | $4,561 | 2.50% |
| Year 6 | $2,803 | $7,363 | 3.26% |
| Year 7 | $3,480 | $10,844 | 4.05% |
| Year 8 | $4,180 | $15,023 | 4.86% |
| Year 9 | $4,902 | $19,925 | 5.70% |
| Year 10 | $5,646 | $25,571 | 6.57% |
What Is Cash-on-Cash Return?
Cash-on-cash return (CoC) measures the annual pre-tax cash flow a rental property generates relative to the actual cash you invested — your down payment, closing costs, and any out-of-pocket rehab. Unlike cap rate, which ignores financing, CoC reflects your real return after the mortgage is paid.
The formula: Cash-on-Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
Most rental investors target 8–12% as a baseline. Below 4% is generally considered weak unless you're banking heavily on appreciation. Above 12% is excellent and usually indicates either a strong market or aggressive leverage. Because CoC depends on financing, two investors buying the same property at different down payments will see very different numbers.
CoC has one big blind spot: it ignores principal paydown, appreciation, and tax benefits. A property with a modest CoC return can still be a great long-term investment once you factor those in. For a fuller picture, pair this with the Rental ROI Calculator which models 10-year equity growth.
Track every property's actual CoC return as the year unfolds with RentalSlate — free for independent landlords.