Investment Property Cash-on-Cash ROI Calculator
Analyze the true cash generation of your rental property based on your initial out-of-pocket capital.
Input your parameters to generate the Investment Property ROI results.
How to Use This Calculator
Get accurate results in seconds by following these simple steps.
Enter Purchase Details
Input the purchase price, down payment, and closing costs for the investment property.
Add Income & Expenses
Enter monthly rent, mortgage payment, and recurring operating expenses.
Review Cash-on-Cash ROI
Click Calculate to see your annual cash yield expressed as a percentage of your invested capital.
Why Use This Tool?
True Yield Measurement
Cash-on-Cash ROI shows what your actual cash earns — not what the whole property earns.
Leverage Aware
Unlike Cap Rate, this metric accounts for your mortgage and shows the power of leverage.
Deal Screening
Quickly determine if a potential investment meets your minimum return threshold.
How to Measure Investment ROI
When investing in real estate, the total price of the home is less important than your actual out-of-pocket 'Cash on Cash' return. This calculator compares your annual cash profit against the actual cash you invested.
First, we sum your Total Capital Invested (Down Payment + Closing Costs + Upfront Repairs). Then, we calculate your Net Annual Cash Flow by subtracting your mortgage and expenses from your rental income.
Dividing your Annual Cash Flow by your Total Capital Invested yields your Cash-on-Cash ROI. This tells you exactly what percentage yield your money is earning per year.
Frequently Asked Questions
Historically, real estate investors aim for a Cash-on-Cash return between 8% and 12%. Returns above this are excellent but often require significant property rehabilitation or exist in high-risk areas.
Cap Rate evaluates the property assuming you bought it entirely in cash. Cash-on-Cash ROI specifically factors in your mortgage (leverage) and your exact down payment to show your personalized cash yield.
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