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Cash-on-Cash Return Calculator

Computes a rental property's annual pre-tax cash flow after operating expenses and debt service, and divides it by the cash invested (down payment, closing costs, repairs) to get the cash-on-cash return.

When to use

You financed a rental property and want the yield on the actual cash you put in, including the effect of the mortgage.

Do not use when: You want an unlevered, financing-independent comparison (use cap-rate) or a total return including appreciation and principal paydown. Informational only; not financial advice.

Formula

annual_cash_flow = annual_rental_income − annual_operating_expenses − annual_debt_service; cash_on_cash_return_percent = annual_cash_flow / cash_invested × 100

First-year, pre-tax cash yield; it ignores appreciation, loan principal reduction, depreciation tax benefits and the sale. Informational mathematics only; not financial advice.

Inputs

Parameter	Type	Required	Description
`cash_invested`	number	yes	Down payment plus closing costs, initial repairs and other upfront cash. Range: > 0, ≤ 1000000000000
`annual_rental_income`	number	yes	Rent and other income actually collected per year. Range: ≥ 0, ≤ 1000000000000
`annual_operating_expenses`	number	yes	Taxes, insurance, maintenance, management, utilities and vacancy allowance per year. Range: ≥ 0, ≤ 1000000000000
`annual_debt_service`	number	default 0	Total mortgage payments (principal + interest) per year; 0 for an all-cash purchase. Range: ≥ 0, ≤ 1000000000000

Outputs

Output	Type	Unit	Description
`net_operating_income`	number		annual_rental_income − annual_operating_expenses.
`annual_cash_flow`	number		net_operating_income − annual_debt_service.
`monthly_cash_flow`	number		annual_cash_flow / 12.
`cash_on_cash_return_percent`	number	%	annual_cash_flow / cash_invested × 100.

Example

60,000 invested, 24,000 rent, 8,000 expenses, 12,000 debt service: {"cash_invested":60000,"annual_rental_income":24000,"annual_operating_expenses":8000,"annual_debt_service":12000} → {"net_operating_income":16000,"annual_cash_flow":4000,"monthly_cash_flow":333.33,"cash_on_cash_return_percent":6.67}

All-cash 200,000 purchase, 18,000 rent, 5,000 expenses: {"cash_invested":200000,"annual_rental_income":18000,"annual_operating_expenses":5000} → {"annual_cash_flow":13000,"monthly_cash_flow":1083.33,"cash_on_cash_return_percent":6.5}

GET https://tttkmbb.com/api/v1/calculate/cash-on-cash-return?cash_invested=60000&annual_rental_income=24000&annual_operating_expenses=8000&annual_debt_service=12000

Machine access

API: GET https://tttkmbb.com/api/v1/calculate/cash-on-cash-return (query parameters) or POST with a JSON body {"inputs": {...}}
Schema: https://tttkmbb.com/api/v1/calculators/cash-on-cash-return · Markdown: https://tttkmbb.com/investing/cash-on-cash-return.md · JSON definition: https://tttkmbb.com/investing/cash-on-cash-return.json
MCP: server https://tttkmbb.com/mcp, tool run_calculator with calculator_id="cash-on-cash-return"
OpenAPI operationId: calculate_cash_on_cash_return
Freshness: static. Authentication: none. Rate limit: fair use (see rate limits).

Sources

Wikipedia – Cash on cash return (reference)
Wikipedia – Capitalization rate (reference)

FAQ

How does this differ from the cap rate?

The cap rate divides NOI by the full price and ignores the mortgage; cash-on-cash subtracts debt service and divides by only the cash you invested, so leverage can push it above or below the cap rate.

Should the principal part of the mortgage count as an expense?

For cash-on-cash yes, because it leaves your pocket in the year; it does build equity, which a total-return measure would add back.

Related calculators

Cap Rate Calculator — Unlevered yield on the property price.
Mortgage Payment Calculator — Compute the annual debt service from the loan terms.
ROI Calculator — Total return including the sale proceeds.