Free Tool

The Cash-on-Cash Return Calculator

Cash-on-cash is the spendable income a deal pays you each year on the money you actually put in — the return you can feel, before any eventual sale. Enter the deal and the debt, and see it. No sign-up required.

The deal

Your equity: down payment plus closing costs and reserves.

Cash-on-cash return

7.6%

Yearly cash flow divided by the cash you put in — the income you actually receive, before the sale.

$244,780
Annual cash flow
1.54x
Debt coverage (DSCR)

In our target range.

A simplified model for education, before taxes and any sale proceeds. Not investment advice.

The return you can feel — versus the one you’re promised

Cash-on-cash return is the annual cash flow a property pays — net operating income minus the loan payment — divided by the cash you actually invested. Unlike a projected total return, it doesn’t depend on selling well years from now. It is the money that shows up while you own the deal, which is why we weigh it heavily: income you receive is worth more than income you’re promised.

We look for a first-year cash-on-cash that stands on its own on verified numbers, without leaning on the eventual sale to rescue the return. A deal whose entire case sits in the exit is a bet on the market; a deal that pays you along the way is an investment. Cash-on-cash vs. IRR → · More free calculators →

Free Playbook

Know the return before the pitch.

Cash-on-cash is one idea from our free Playbook — the plain-English guide to evaluating an apartment deal, and the sponsor behind it, like an institution.

Get the Playbook Schedule an Introduction