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

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Monthly Cash Flow

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Cash-on-Cash Return

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Est. Net Profit

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Est. Sale Proceeds

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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.