Cash on Cash Return Calculator
Calculate cash-on-cash return for rental property investments.
Total Cash Invested = Down Payment + Closing Costs + Repairs\nCash-on-Cash Return = Annual Pre-Tax Cash Flow / Total Cash Invested * 100\nPayback Period = Total Cash Invested / Annual Cash Flow
Example:\nDown Payment: $50,000\nClosing Costs: $5,000\nRepairs: $10,000\nAnnual Cash Flow: $12,000\n\nTotal Invested = $65,000\nCoC Return = $12,000 / $65,000 = 18.46%\nPayback = 65,000 / 12,000 = 5.4 years
What is cash-on-cash return?
Annual pre-tax cash flow divided by total cash invested. Measures return on actual cash invested, not property value.
What is a good CoC return?
Generally, 8-12%+ is considered good for rental properties. Depends on market, risk, and alternative investments.
How is this different from ROI?
CoC focuses on cash invested and cash flow. ROI includes appreciation, equity, and total return. CoC is better for cash flow analysis.
What counts as cash invested?
Down payment, closing costs, initial repairs, and any other upfront cash expenses. Does not include financed amounts.
Should I use pre-tax or post-tax cash flow?
CoC typically uses pre-tax cash flow. For after-tax analysis, subtract income tax on net rental income.
🔗 Related Calculators
📐 Formula
Total Cash Invested = Down Payment + Closing Costs + Repairs\nCash-on-Cash Return = Annual Pre-Tax Cash Flow / Total Cash Invested * 100\nPayback Period = Total Cash Invested / Annual Cash Flow
📝 Example Calculation
Example:\nDown Payment: $50,000\nClosing Costs: $5,000\nRepairs: $10,000\nAnnual Cash Flow: $12,000\n\nTotal Invested = $65,000\nCoC Return = $12,000 / $65,000 = 18.46%\nPayback = 65,000 / 12,000 = 5.4 years
❓ Frequently Asked Questions
What is cash-on-cash return?▼
Annual pre-tax cash flow divided by total cash invested. Measures return on actual cash invested, not property value.
What is a good CoC return?▼
Generally, 8-12%+ is considered good for rental properties. Depends on market, risk, and alternative investments.
How is this different from ROI?▼
CoC focuses on cash invested and cash flow. ROI includes appreciation, equity, and total return. CoC is better for cash flow analysis.
What counts as cash invested?▼
Down payment, closing costs, initial repairs, and any other upfront cash expenses. Does not include financed amounts.
Should I use pre-tax or post-tax cash flow?▼
CoC typically uses pre-tax cash flow. For after-tax analysis, subtract income tax on net rental income.