Cash on cash return calculator

Cash-on-cash return is annual pre-tax cash flow divided by cash invested (down payment plus closing costs). It answers “what does my check earn this year?” after the mortgage, unlike cap rate, which ignores leverage. A 20% down payment and a 5% down payment on the same house will not print the same cash-on-cash, even when cap rate is identical.

Raise the down payment and cash-on-cash often falls even if DSCR improves. Cut the rate or increase rent and both can rise together. Use the worked example first, then plug in a listing you already like so the percentage is tied to real numbers, not a blog formula. Include closing costs; leaving them out inflates the return and makes every deal look kinder than the wire you will actually send.

A strong cash-on-cash with a weak DSCR is a red flag for lenders. The reverse—solid coverage and a tiny cash-on-cash—usually means you put in too much equity for the income. Run this calculator next to the DSCR and cap rate tools, then save the deal if you want the same stack on live inventory with a 14-day trial.

Other tools: DSCR calculator · Cap rate calculator · Cash flow calculator · Rental property calculator

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