Real Estate

Rental Property ROI Calculator

Calculate your cash-on-cash return on a rental property.

Enter your rental income, expenses (including mortgage payments), and total cash invested to calculate your cash-on-cash return — a key metric for leveraged real estate investments.

Enter a valid amount.
Taxes, insurance, maintenance, management (excluding mortgage)Enter a valid amount.
Down payment + closing costs + repairsEnter a valid cash invested amount.

Cash-on-Cash Return

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Annual Cash Flow

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How to Use This Tool

  1. Enter your annual rental income.
  2. Enter your operating expenses and mortgage payments.
  3. Enter your total cash invested (down payment + closing costs + repairs), then calculate.

The Cash-on-Cash Return Formula

Annual Cash Flow = Rental Income − Operating Expenses − Mortgage Payments

Cash-on-Cash Return = Annual Cash Flow ÷ Total Cash Invested × 100

Cash-on-Cash Return vs. Cap Rate

Unlike cap rate (which excludes financing), cash-on-cash return specifically measures the return on the actual cash you put into the deal, including the effect of leverage (your mortgage). This makes it more relevant for evaluating your personal investment performance on a financed property.

Why Leverage Can Boost (or Hurt) Returns

Using a mortgage means you invest less cash upfront, which can significantly amplify your cash-on-cash return compared to buying with all cash — but it also means your cash flow is more sensitive to vacancy, rate changes (for adjustable loans), and unexpected expenses.

What This Doesn't Include

This calculator measures cash flow return only — it doesn't account for property appreciation, mortgage principal paydown (which builds equity over time), or tax benefits like depreciation, all of which contribute to total real estate investment returns beyond pure cash flow.

Frequently Asked Questions

What's the difference between cash-on-cash return and cap rate?

Cap rate excludes financing and measures the property's unleveraged return, while cash-on-cash return specifically accounts for your mortgage payments and measures the return on the actual cash you invested.

Does this include property appreciation?

No, this measures only cash flow return. Total real estate returns typically also include property appreciation and mortgage principal paydown, which build equity over time but aren't captured in cash-on-cash return.

This calculator is provided for general informational and estimation purposes only. Results should not be treated as professional financial, tax, legal, medical, or engineering advice. Always verify critical calculations with a qualified professional or official source before making decisions.