Factor in your financing. Enter the price, down payment, loan terms, and NOI to see your real cash-on-cash return.
Estimates only. Assumes a fully amortizing loan and excludes closing costs, capital reserves, and income taxes. Confirm terms with your lender.
Cash-on-cash return measures the annual pre-tax cash flow a property produces relative to the actual cash you put into it. Unlike cap rate, it accounts for financing — making it the metric that tells you what your money is really earning.
Annual cash flow is your net operating income minus annual debt service (mortgage payments). Cash invested is your down payment (and, in a fuller model, closing costs and reserves).
Enter the purchase price, your down payment percentage, the loan's interest rate and amortization period, and the property's NOI. The calculator sizes the loan, computes the amortizing payment, subtracts debt service from NOI, and divides the result by your down payment.
Cap rate measures a property's unleveraged yield; cash-on-cash measures your leveraged return after the mortgage. Used together, they show both the quality of the asset and the impact of your financing.
It varies with risk and market. Many commercial investors target high single digits to low double digits on stabilized assets, but a "good" number depends on your strategy.
No. Cash-on-cash is a cash-flow metric only. Total return would also include principal paydown, appreciation, and tax effects.