Cash on cash return calculator
Enter the price, the cash you put in, the loan terms and the property's rent and expenses to see annual cash flow and cash on cash return, for your review of an investment property file.
Runs in your browser. What you type isn't sent or stored.
Calculate cash on cash return
Purchase and cash invested
For example repairs paid up front.
Loan
Blank = price − down payment. Enter 0 for no loan.
There is no default rate.
Rent and expenses
Optional. There is no default.
Taxes, insurance, repairs, management. Not the mortgage.
How cash on cash return is calculated
Annual cash flow = NOI − annual debt service (12 × the monthly principal and interest). Cash on cash return = annual cash flow ÷ cash invested, as a percent.
Cash invested is the down payment plus closing costs plus any other cash you enter, such as repairs paid up front.
Worked example
- Price $400,000, down payment $100,000, closing costs $10,000: $110,000 invested.
- Loan $300,000 at a 6% rate entered over 30 years: $1,798.65 a month, $21,583.80 a year.
- NOI $24,000 (rent $36,000, 5% vacancy, $10,200 expenses): cash flow $2,416.20.
- $2,416.20 ÷ $110,000 = 2.20% cash on cash return.
Round numbers for illustration only; the rate, term and expenses are inputs, not defaults.
What this calculator doesn't do
- It's a first-year cash figure. It leaves out taxes on income, depreciation, principal paydown and appreciation.
- It sets no rate, term, vacancy or expense figure. Every figure is the one you type.
- It doesn't make a lending decision.
Questions
How is cash on cash return calculated?
Cash on cash return = annual cash flow ÷ cash invested, as a percent. Annual cash flow = NOI − annual debt service. Cash invested = down payment + closing costs + any other cash you enter.
How is the debt service worked out?
Principal and interest on the loan amount at the rate and term you enter, with a standard amortization formula, times 12. Leave the loan amount blank to use the price minus the down payment. With no loan, debt service is $0.
Can cash on cash return be negative?
Yes. When the debt service is more than the NOI, the cash flow and the return are negative, and the calculator shows them that way.
What's left out?
Taxes on income, depreciation, principal paydown and appreciation. It's a first-year cash figure from the numbers you enter.
How is it different from cap rate?
Cap rate is NOI ÷ value and ignores the loan. Cash on cash return includes the mortgage payment and measures against the cash you put in. Use the cap rate calculator for NOI ÷ value.
Is anything I type saved?
No. The figures are calculated in your browser, and what you type isn't sent or stored.
Not legal or tax advice.
Ready for the real statements?
Upload 12 or 24 months of PDFs. StatementReady checks whether each statement's transactions add up to its printed balances.
This tool assists your review of the loan file. The lender makes all underwriting decisions.
StatementReady isn't affiliated with or endorsed by Fannie Mae or any lender named here.