Cash-on-Cash Return Calculator - annual return on cash invested
Estimate the annual cash-on-cash return on a rental or BRRRR from your down payment, closing costs, rehab, rent and expenses. Conservative and instant, no signup.
Keep operating expenses conservative: include property taxes, insurance, management, maintenance, vacancy and reserves so the return is not overstated.
Cash-on-cash result
15.0%
Annual cash-on-cash return
- Down payment
- $37,500
- Total cash invested
- $46,500
- Monthly cash flow
- $580
- Annual cash flow
- $6,960
A conservative cash-on-cash return calculator
Cash-on-cash return answers a simple question: for every dollar of your own cash in a deal, how much cash does it put back in your pocket each year? Because it compares annual cash flow to the actual money you invested, it is one of the clearest ways to screen a rental or a stabilized BRRRR before you commit. Enter the purchase price, down payment percentage, closing costs and upfront rehab to set your total cash invested, then add monthly rent, operating expenses and the mortgage payment. The result is an annual cash-on-cash percentage that updates as each assumption changes.
The formula is direct: annual cash flow divided by cash invested. The number is only as honest as the expenses behind it, so conservative underwriting matters. Include property taxes, insurance, management, maintenance, a vacancy allowance and capital reserves in monthly operating expenses rather than assuming full rent every month. If the return still looks acceptable after those deductions, and after stress-testing rent and a longer hold, the deal is more likely to hold up in the real world.
Use it with the other FlipIQ tools
If you are recycling capital through a refinance, pair this with the BRRRR Calculator to see how much cash stays in the deal after the refi. To anchor resale or refinance value, start with the ARV Calculator, estimate the work with the Rehab Cost Estimator, and check monthly carrying costs with the Holding Cost Calculator. FlipIQ's full analyzer ties those numbers together from an address, comps and an editable rehab scope.
Analyze a full deal in FlipIQ
This calculator gives you one number. FlipIQ turns an address into a conservative ARV range, an AI rehab budget and a full flip P&L — profit, ROI and annualized ROI — all editable and live. Get 3 analyses free, no account needed.
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More free tools
ARV Calculator
Free ARV calculator: enter recent comparable sales and get a conservative after-repair value range for your subject property. No signup, works on mobile.
70% Rule Calculator
Free 70% rule calculator: turn ARV and repair costs into your Maximum Allowable Offer. Adjust the rule percentage and see your MAO update instantly.
Rehab Cost Estimator
Free rehab cost estimator: get a ballpark renovation budget from square footage and condition, broken into line items with a built-in contingency.
Flip Profit Calculator
Free flip profit calculator: enter purchase, rehab, holding and selling costs to estimate conservative net profit and ROI before you make an offer.
BRRRR Calculator
Free BRRRR calculator: model buy, rehab, rent and refinance numbers to estimate cash left in the deal and conservative cash-on-cash return.
Holding Cost Calculator
Free holding cost calculator: estimate taxes, insurance, loan interest and utilities across your holding period so your flip budget stays conservative.
Wholesale Calculator
Free wholesale real estate calculator: enter ARV, repair costs, your target assignment fee and the end-buyer rule to get a conservative Maximum Allowable Offer to the seller and your wholesale spread. No signup, works on mobile.
Frequently asked questions
How do you calculate cash-on-cash return?＋
Cash-on-cash return is annual pre-tax cash flow divided by the total cash you invested, times 100. This calculator uses: cash-on-cash = (monthly rent minus operating expenses minus mortgage) times 12, divided by (down payment plus closing costs plus upfront rehab).
What is the difference between cash-on-cash return and ROI?＋
Cash-on-cash return only measures the annual cash flow against the actual cash you put in, so it ignores appreciation, loan paydown and tax benefits. Total ROI adds those longer-term gains. Cash-on-cash is best for judging whether a deal pays you while you hold it.
What counts as cash invested?＋
The out-of-pocket cash to acquire and stabilize the property: down payment, closing costs, and any upfront rehab or improvements. It does not include the financed portion of the purchase price, since that is not your own cash.
What is a good cash-on-cash return?＋
There is no universal target because leverage, market and risk vary. Many rental investors look for a return that clearly beats a safe alternative after conservative expenses. Underwrite with realistic vacancy, maintenance and reserves rather than a best-case rent.
Should I include vacancy and maintenance in expenses?＋
Yes. Leaving out vacancy, repairs, capital reserves and property management is the most common way to overstate cash-on-cash return. A conservative estimate assumes these will happen and budgets for them monthly.
Is this calculator investment advice?＋
No. It is a free decision-support calculator. Confirm rent with local comparables, verify operating expenses, and check your actual financing terms before making an offer.