What is cash-on-cash return?
It is annual pre-tax cash flow divided by the cash invested upfront. This baseline includes down payment, closing costs, rehab or improvement costs, and other upfront cash.
US · USDTransparent educational estimate
Cash-on-Cash Return Calculator
Compare annual pre-tax cash flow with the cash invested upfront. Separate down payment, closing, rehab, and other initial costs so the return denominator stays visible.
What this baseline models
- Annual pre-tax cash flow
- All modeled upfront cash
- Safe zero-denominator handling
- Cash-flow sensitivity
Public calculator · no account required
Model cash return
Model cash return
Enter annual pre-tax cash flow and every upfront cash contribution included in the deal.
Cash-on-cash return
15.00%
Annual pre-tax cash flow divided by total cash invested
Total cash invested
$80,000
Down payment and all modeled upfront costs
Annual cash flow
$12,000
Entered pre-tax twelve-month cash flow
Monthly equivalent
$1,000.00
Annual pre-tax cash flow divided by twelve
Cash return detail
Cash invested and pre-tax cash-flow measures used in the return.
- Total cash invested
- $80,000
- Annual pre-tax cash flow
- $12,000
- Monthly cash-flow equivalent
- $1,000.00
- Cash-on-cash return
- 15.00%
Keep this analysis
Open the full browser report now or send the same link-based analysis to your inbox. No account is required.
Assumption checks
Deterministic checks based only on this scenario's inputs and outputs.
Income tax effects are excluded
The return is a pre-tax estimate and does not include depreciation, income taxes, appreciation, refinance proceeds, or sale proceeds.
Cash-flow sensitivity
Each row reruns the same formula engine while changing annual pre-tax cash flow by ±5% and ±10%.
Cash-flow sensitivity details
| Cash-flow change | Annual cash flow | Monthly equivalent | Cash-on-cash |
|---|---|---|---|
| -10.00% | $10,800 | $900.00 | 13.50% |
| -5.00% | $11,400 | $950.00 | 14.25% |
| Base | $12,000 | $1,000.00 | 15.00% |
| +5.00% | $12,600 | $1,050.00 | 15.75% |
| +10.00% | $13,200 | $1,100.00 | 16.50% |
Formula reference
Every output is explainable
Money is displayed in USD and rates are entered as percentages where applicable. Formula version cash-on-cash-return@1.0.0 stays attached to the result.
Total cash invested
Down payment + closing costs + rehab or improvement costs + other upfront cash
The upfront cash included in the return denominator for this scenario.
Cash-on-cash return
Annual pre-tax cash flow ÷ total cash invested
The annual pre-tax cash-flow return on the modeled upfront cash investment.
Monthly cash-flow equivalent
Annual pre-tax cash flow ÷ 12
A monthly equivalent for comparison; it does not change the annual return calculation.
Example scenario
An $80,000 upfront investment
The example combines $12,000 in annual pre-tax cash flow with $80,000 of total upfront cash. It demonstrates the formula clearly without implying that 15% is appropriate for every property or investor.
Open the example in the calculatorAnnual cash flow
$12,000
Down payment
$60,000
Total cash invested
$80,000
Cash-on-cash return
15.00%
FAQ
Common questions
Can annual cash flow be negative?
Yes. A negative value models an annual cash shortfall and produces a negative cash-on-cash return when total cash invested is positive.
Does this return include appreciation or sale proceeds?
No. It isolates pre-tax operating cash flow from upfront cash. Appreciation, refinance proceeds, sale proceeds, depreciation, and income-tax effects are excluded.
Why can the result be unavailable?
If total upfront cash invested is zero, the return denominator is zero. The calculator shows an unavailable state instead of infinity or a misleading percentage.
Related calculators
Compare this result with another view of income, financing, or project returns. Each calculator uses its own transparent assumptions.