Cash-on-Cash Return Calculator
Annual Rental Income: 600000
Annual Operating Expenses: 100000
Annual Mortgage Payments: 250000
Down Payment: 1000000
Purchase Costs: 100000
Renovation Costs: 150000
Annual Cash Flow: 600000 - 100000 - 250000 = 250000 Total Cash Invested: 1000000 + 100000 + 150000 = 1250000 Expected Result: 20.00%
Buying a property often involves more than simply looking at its purchase price.
You may put down a deposit, pay purchase costs, spend money on renovations and still have mortgage payments to make throughout the year.
The Prozameen Cash-on-Cash Return Calculator helps bring those numbers together so you can estimate how much annual cash return the property may generate compared with the money you personally invested.
What is Cash-on-Cash Return?
Cash-on-cash return measures the annual cash generated by a property compared with the amount of cash invested upfront.
Unlike calculations based only on the property's value, this metric can be especially useful when a property is financed with a mortgage.
How to Use the Calculator
Enter:
- Annual Rental Income
- Annual Operating Expenses
- Annual Mortgage Payments
- Down Payment
- Purchase Costs
- Renovation Costs
The calculator will estimate your annual cash-on-cash return.
Cash-on-Cash Return Formula
Cash-on-Cash Return = Annual Cash Flow ÷ Total Cash Invested × 100
Annual Cash Flow is:
Annual Rental Income - Annual Operating Expenses - Annual Mortgage Payments
Total Cash Invested is:
Down Payment + Purchase Costs + Renovation Costs
Example
Imagine you purchase a rental property with:
- Annual Rental Income: 600,000
- Annual Operating Expenses: 100,000
- Annual Mortgage Payments: 250,000
- Down Payment: 1,000,000
- Purchase Costs: 100,000
- Renovation Costs: 150,000
Your annual cash flow would be:
250,000
Your total cash invested would be:
1,250,000
Estimated Cash-on-Cash Return:
20%
What Does the Result Tell You?
The result gives you a simple way to compare the property's estimated yearly cash flow with the money you have personally invested.
For example, a result of 8% means the estimated annual cash flow is equal to approximately 8% of the cash invested.
It should not be viewed as a guarantee of future returns. Rental income, vacancies, maintenance costs, mortgage payments and other expenses can all change over time.
Click here to check Prozameen Cap Rate Calculator
Important Information
Learn more about the underlying metric in the Cash-on-Cash Return glossary, and compare it with Capitalization Rate (Cap Rate) to understand the difference between property-level performance and investor cash returns.
This calculator focuses on estimated annual cash flow.
It does not include future property appreciation, capital gains, selling costs or every possible tax and financing consideration.
Results are provided for informational and educational purposes only.
