Cash-on-Cash Calculator | RE Underwrite Lab

Cash-on-cash return calculator

Example only. Not financial, investment, legal, tax, lending, or appraisal advice.

Cash-on-cash compares the annual pre-tax cash flow you type with the cash you say is invested.

It is not cap rate, and it is not a forecast of what the property will pay you.

What this measures

Cash invested might be the down payment, closing costs, and rehab you paid in cash. This page does not itemize those. You type one total.

Annual cash flow is what you believe is left after the expenses and the loan payment you already counted. Type that leftover amount, including a negative number if the year costs you cash.

Formula

Cash-on-cash = annual cash flow ÷ cash invested. If cash invested is zero or blank, the page shows no ratio.

The result is a percent of the cash you typed, for the year you typed. It is not an annualized stock-style return and it does not compound.

Example

The sample cash flow and cash invested below are a check of the division. Cash-on-cash is 8.00%. Annual cash flow is $4,000. Cash invested is $50,000.

Example. These inputs are numbers you can replace. They are not a property RE Underwrite Lab bought, sold, listed, or inspected.

Questions

Is cash-on-cash the same as cap rate?

No. Cap rate uses NOI and price, and it ignores the loan. Cash-on-cash uses cash flow and cash invested.

Can the result be negative?

Yes. If you type negative cash flow, the ratio is negative. That means the example year uses cash.

What belongs in cash invested?

The cash you put in. A common total is down payment plus closing costs plus rehab paid in cash. You decide the total.

Does this page know my loan payment?

No. Include the loan payment in the cash-flow number before you type it, or leave it out and the ratio will not reflect debt.

Is this a promised return?

No. It is the ratio of the two numbers on the screen.

Estimates only. Not financial, legal, tax, or investment advice. RE Underwrite Lab calculators and PDF reports provide educational estimates based on the numbers you enter. Actual purchase costs, rents, expenses, financing terms, taxes, insurance, vacancy, rehab costs, refinance eligibility, and returns vary by property, market, lender, and local law (including short-term rental rules). We do not guarantee any outcome, profit, cash flow, or appraisal. Some content and tools may be generated or assisted by artificial intelligence and can contain errors. Always verify assumptions with licensed professionals and your own due diligence before making decisions.