Cash-on-cash return is annual cash flow divided by the cash you actually invested. This calculator does it honestly: closing costs and upfront repairs count, and expenses default to realistic rules of thumb instead of zero.
Cash-on-cash return answers one question: for every dollar of actual cash you put into this deal, how many cents does it pay you back per year, before tax? It is the purest measure of how hard your money is working, because unlike cap rate it includes your financing, and unlike appreciation it only counts money that actually lands in your account.
Cash-on-cash = annual pre-tax cash flow ÷ total cash invested
The two inputs hide most of the mistakes. Annual cash flow must be rent minus every real cost: vacancy, maintenance, capital expenditures, management, taxes, insurance, and the mortgage payment. Total cash invested must be every dollar you part with at the start: the down payment, closing costs, and upfront repairs. This calculator bundles the four percentage costs into one field with a 33% default, which reflects common rules of thumb of roughly 6% vacancy, 9% maintenance, 9% CapEx and 9% management.
Take the defaults above: a $250,000 property, 25% down at 6.5% for 30 years, renting for $2,100. The loan is $187,500 and the payment about $1,185 a month. Operating costs run $2,100 × 33% plus $375 of monthly taxes and insurance, about $1,068. That leaves roughly a negative $153 a month, on $67,000 invested ($62,500 down plus $4,500 closing). The cash-on-cash is about negative 2.7%. That is the honest arithmetic of many listings at today's rates, and it is exactly why running the number before you offer matters.
| Cash-on-cash | How investors commonly read it |
|---|---|
| Under 0% | The property costs you money every month you own it |
| 0% to 5% | Positive but thin; one repair or vacant month can erase the year |
| 5% to 8% | Workable in strong appreciation markets; weak as a pure cash-flow play |
| 8%+ | The rough threshold many cash-flow investors target |
Dividing by the down payment alone. Closing costs and upfront repairs are real cash out of your pocket, and lenders will also require reserves you cannot spend. Counting only the down payment can make a 6% deal look like an 8% one. The full DealGauge grader counts reserves and an operating float in cash invested; this quick version counts down payment, closing and repairs, so treat its answer as slightly generous.
The free DealGauge calculator grades any rental A to F across cash flow, cash-on-cash, financeability and cap rate, then solves the most you could pay and still hit your targets. No account, no email, no property limit.
Grade a deal freeNo. ROI usually includes equity from loan paydown and appreciation. Cash-on-cash only counts cash income against cash invested, which makes it stricter and harder to manipulate.
Use the rent a comparable unit actually achieves today, not the listing's pro forma. Optimistic rent is the most common way a deal lies to you.
At 2026 rates, many properties do not cover their full costs at asking price. A negative number is the calculator working, not failing. The fix is a lower price, higher rent, or a bigger down payment, and you can test all three above.
Related: What is a good cash-on-cash return? · Cap rate calculator · DSCR calculator
General information and educational content only, not investment, tax, or legal advice. Benchmarks are common rules of thumb, not guarantees or projected results. Results are estimates from the numbers you enter. Verify every figure and consult a qualified professional before purchasing any property.