Cash-on-Cash Return Calculator
Calculate the annual return on the actual cash you invested in a rental property.
Assumptions used in this calculation
- Pre-tax cash flow: Uses pre-tax cash flow, it doesn't account for income tax on rental income or any deductions like depreciation.
- Total cash invested: Assumes the cash invested figure you enter already captures all upfront cash, down payment, closing costs, and any initial repairs, not just the down payment alone.
About this calculator
Cap rate and total ROI both measure return against the full property price or purchase price, but that's not the number that matters if you financed most of the purchase, what matters is the return on the actual cash you put down, since leverage amplifies gains (and losses) on that smaller base. This calculator divides a property's annual pre-tax cash flow by the total cash actually invested, down payment, closing costs, and any upfront repairs combined, not the full purchase price, to express return as a percentage on your real out-of-pocket investment. Two inputs, annual cash flow and total cash invested, do the division for you, the harder part in practice is correctly totalling every upfront cash outlay rather than just the down payment. Because it accounts for financing, cash-on-cash return typically shows a higher percentage than cap rate on the same leveraged property, reflecting the effect leverage has on your specific return.
Worked example
₹1,80,000 annual cash flow on ₹15,00,000 cash invested
Result: Cash-on-cash return = 12%
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