Cash-on-Cash Return Calculator
Calculate annual cash-on-cash return on real estate investments with sensitivity analysis.
Frequently asked questions
What is cash-on-cash return?
Cash-on-cash return measures the annual pre-tax cash flow a property generates divided by the total cash invested to acquire it. It answers the question: what percentage of my cash am I getting back per year in distributions?
What is a good cash-on-cash return in real estate?
Most rental investors target 8-12% cash-on-cash return on stabilized long-term rentals. Value-add and short-term rental deals typically underwrite to 15%+ to compensate for higher operational and execution risk.
How is CoC different from cap rate and IRR?
Cap rate measures unlevered yield on the property price. Cash-on-cash measures levered cash yield on your actual equity invested. IRR measures the time-weighted return over the full hold, including appreciation and eventual sale proceeds.