Real estate & rental
Real Estate Cash on Cash Return Calculator
Return on the cash you actually put in, after the mortgage is paid.
Result
An arithmetic tool, not investment advice. Property returns depend on the local market, the condition of the building, financing terms and tax position, none of which a calculator can see. Verify the income and expense figures against actual statements rather than a seller's projection. Cash on cash counts only cash flow, so it ignores principal paydown, appreciation and tax benefits, all of which can be larger than the cash return. It is a liquidity measure rather than a total return measure.
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About this calculator
Why is my cash on cash return higher with a bigger mortgage?
Leverage. Less cash invested against the same property magnifies the percentage, in both directions. A small change in rent or vacancy hurts a heavily leveraged deal far more.
Does this include appreciation?
No. It measures only the cash the property produces each year. Total return adds principal paydown, appreciation and tax treatment, and can be substantially higher.
The formula
cash on cash = (NOI - annual debt service) / total cash invested
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