What is cash-on-cash return?

Cash-on-cash return measures the annual pre-tax cash flow as a percentage of the cash you invested (down payment plus closing costs). It shows how quickly your money is returned from rental income.

What is a good cash-on-cash return?

Most investors target 6% to 12%. Higher returns usually come with higher risk, such as less desirable areas or older properties needing more maintenance.

Real Estate Investment Calculator

Estimate cash flow, returns and profit for a property.

Property & Investment

Purchase Price ($)

Down Payment (%)

Closing Costs ($)

Monthly Rental Income ($)

Monthly Expenses ($)

Tax, insurance, maintenance, management

Annual Appreciation (%)

Selling Costs (%)

Holding Period (years)

yrs

Total Investment

—

Monthly Cash Flow

—

Cash-on-Cash Return

—

Est. Net Profit

—

Est. Sale Proceeds

—

Cumulative Profit by Year

Key real estate metrics explained

Total Investment — your down payment plus closing costs. This is the cash you put in.
Cash Flow — monthly rent minus expenses. Positive cash flow means the property pays you while you own it.
Cash-on-Cash Return — annual cash flow divided by total investment, shown as a percentage.
Est. Net Profit — cash flow over the holding period plus the gain from selling (after appreciation and selling costs).

Real Estate Calculator FAQ

What is positive cash flow?▶

When monthly rental income exceeds all expenses, the property produces positive cash flow. It is the primary goal of many real estate investors.

Does appreciation matter for investment returns?▶

Yes — a large share of real estate profits comes from price appreciation over time. But appreciation is not guaranteed, so relying on cash flow is safer.

Rental yield: Annual rent ÷ property value

Good yield: 4–6% in Indian metros

Appreciation: 6–9% historical

Total return: Yield + appreciation

Real Estate Calculator — rental yield and total return

Is that property a good investment? This real estate calculator computes the gross rental yield, net yield after expenses, total return with appreciation, and cash flow — the numbers serious property investors run before signing.

Rental yield explained

Gross yield = annual rent ÷ property price × 100. A $30,000/month rent on a $90 lakh property is a 4% gross yield.

Net yield subtracts maintenance (0.5–1% of value/year), property tax, insurance and vacancy (1 month/year typical).

In Indian metros, rental yields of 3–5% are common; the profit often comes from appreciation over 10+ years.

The full return picture

Total return = rental yield + capital appreciation. A 4% yield + 7% appreciation = ~11% annualized — competitive with equity.

Leverage amplifies: with a 20% down payment, apartment appreciation applies to the full property value, boosting equity returns.

But leverage cuts both ways — vacancies, interest-rate hikes and no appreciation can turn the same property negative.

How to use this calculator

Enter the property purchase price.
Enter the monthly rent you expect.
Optionally add annual expenses (maintenance, tax, insurance).
Enter the expected annual appreciation.
Read gross yield, net yield, cash flow and total annual return.

Pro tips

Buy for rental cash flow, not hope-value — appreciation is never guaranteed.
Tier-2/3 cities often yield 5–8% vs metro 3–4% — compare carefully.
Add a 1-month vacancy and 3% annual rent escalation to be realistic.

Frequently asked questions

What is a good rental yield in India?▶

4–6% is good in metros; 6–8% in tier-2/3 cities and commercial properties. Below 3% usually means you're paying for appreciation only.

How do I calculate property return?▶

Total return = (gross rent − expenses + appreciation) ÷ property value. For leveraged deals, compute the return on your down payment instead.

Real Estate Calculator