Use this calculator to estimate cash-on-cash return from annual pre-tax cash flow and total cash invested. It helps property investors assess the return on actual cash committed to a rental deal.

What this calculator does

The cash-on-cash return calculator measures annual cash flow against the cash invested in the property.

It uses:

annual pre-tax cash flow
total cash invested
cash return percentage
investor cash basis

This gives a focused view of how hard your cash is working before tax.

How to use the cash-on-cash return calculator

Enter annual pre-tax cash flow and total cash invested. Cash flow can be positive or negative, depending on whether rent covers property costs and debt payments.

Total cash invested should include deposit, closing costs, initial repairs, and other cash paid into the deal.

Cash-on-Cash Return Formula

Cash-on-cash return = annual pre-tax cash flow / total cash invested x 100

Where annual pre-tax cash flow is the cash left before tax and total cash invested is the investor cash used to acquire and prepare the property.

Example calculation

If:

Annual pre-tax cash flow = 12,000
Total cash invested = 100,000
Formula = 12,000 / 100,000 x 100
Cash-on-cash return = 12.00%

A property that generates 12,000 annual cash flow on 100,000 cash invested has a cash-on-cash return of 12.00%.

What is cash-on-cash return?

Cash-on-cash return is a property investment metric focused on cash yield. It is especially useful for leveraged purchases because it uses the investor cash contribution rather than the full property value.

It does not measure appreciation, loan principal paydown, tax effects, or resale profit.

Interpreting your result

A positive return means the property produces cash relative to the cash invested. A negative return means the property requires ongoing cash support.

Use this alongside mortgage modelling with the Loan Payment Calculator and full investment return analysis with the ROI Calculator.

When to use this calculator

Use this calculator when you want to:

review rental cash yield
compare leveraged deals
assess deposit efficiency
measure annual cash performance

Common mistakes

Common mistakes include:

using property value instead of cash invested
excluding closing costs
ignoring repair cash
mixing after-tax and pre-tax figures

FAQs

Is cash-on-cash return before tax?

In this calculator, yes. It uses annual pre-tax cash flow.

Can cash-on-cash return be negative?

Yes. Negative cash flow produces a negative cash-on-cash return.

Cash-on-Cash Return Calculator