What is a good cash-on-cash return?

6–10% is generally considered solid for residential rentals. Commercial and value-add deals target 8–12%+. Below 5% may not justify risk vs alternatives.

Does cash-on-cash include appreciation?

No — it measures only annual cash flow divided by cash invested. Total return including appreciation is captured by equity multiple or IRR.

How does leverage affect cash-on-cash?

Positive leverage amplifies returns. A 6% cap rate property financed at 4% mortgage rate can yield 8–10% cash-on-cash on leveraged equity.

Cash-on-Cash Return Calculator

Calculate annual pre-tax cash flow divided by total cash invested. Measures actual yield on equity deployed. Formula: CoC = Annual Cash Flow / Total Cash Invested × 100.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate annual pre-tax cash flow divided by total cash invested. Measures actual yield on equity deployed. Formula: CoC = Annual Cash Flow / Total Cash Invested × 100. Use the cash-on-cash return result to inform your calculation.

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Frequently Asked Questions

What is a good cash-on-cash return?

Does cash-on-cash include appreciation?

How does leverage affect cash-on-cash?