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Cash-on-Cash Return Calculator
Levered yield: annual cash flow divided by cash you put in (down payment + closing costs, if you include them in cash invested).
What is cash-on-cash return?
Short answer: Cash-on-cash return is annual pre-tax cash flow from the property divided by the cash you invested (e.g., down payment and closing costs), showing levered yield on equity.
Inputs
Cash-on-cash = (annual pre-tax cash flow ÷ total cash invested) × 100. Use after-debt cash flow.
Results
What is cash-on-cash return?
Cash-on-cash is annual pre-tax cash flow divided by equity invested—typically down payment and out-of-pocket closing costs.
How is it different from ROI?
Cash-on-cash is usually a one-year income yield on cash in; total ROI includes appreciation, loan paydown, and sale—often over multiple years.
What is a good cash-on-cash return?
Many buy-and-hold investors target roughly 8–15% when leveraged; “good” depends on market, risk, and whether you rely on appreciation.