Finance & Economics / Real Estate Investment

Cash-on-Cash Return Calculator

Annual Rental Income ($)

Operating Expenses ($)

Annual Mortgage Payments ($)

Down Payment ($)

Closing Costs ($)

Renovation Costs ($)

Formula: Cash-on-Cash Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100

Where: Annual Pre-Tax Cash Flow = Annual Rental Income - (Operating Expenses + Annual Debt Service)

Total Cash Invested = Down Payment + Closing Costs + Renovation Costs

Good return: 8-12% is typically considered good. Above 12% is excellent. Below 8% may need evaluation.

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