Cash-on-Cash Return Calculator
Enter a rental's purchase price, rent, financing, and operating costs to see annual cash flow, Net Operating Income (NOI), cap rate, and Cash-on-Cash (CoC) return — in seconds.
Property & rent
Start with the all-in purchase price and the rent you expect to collect.
Financing
A standard 30-year investment loan defaults to 25% down at 7%. Adjust to match your lender quote.
Operating costs
Vacancy, management, and maintenance are taken as a percentage of rent. Leave insurance blank to use a rough estimate from the purchase price.
Enter a purchase price and monthly rent to see results.
Breakdown
- Down payment
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- Loan amount
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- Total cash invested
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- Monthly mortgage (P&I)
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- Annual cash flow
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- Net Operating Income (NOI)
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- Cap rate
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This is an estimate based on the numbers you entered. Real Cash-on-Cash returns come from current, verified rent comps and lender quotes — not defaults. Always confirm with a full Comparative Market Analysis (CMA) before making an offer.
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Run a real CMA freeHow to calculate Cash-on-Cash return
Cash-on-Cash (CoC) return is the most honest yardstick for a leveraged rental. It compares the actual cash a property puts in your pocket each year to the actual cash you had to put in to own it. The formula is simple:
Cash-on-Cash return = annual pre-tax cash flow ÷ total cash invested
Annual cash flow is rent, minus vacancy and operating expenses, minus the principal-and-interest mortgage payment. Total cash invested is your down payment plus closing and financing costs plus any rehab you paid for in cash. The calculator above runs both halves of that equation from the numbers you enter.
Cash-on-Cash vs cap rate
Cap rate and Cash-on-Cash answer different questions. Cap rate is Net Operating Income divided by purchase price — it ignores financing, so it tells you what an all-cash buyer would earn. Cash-on-Cash folds the mortgage in and uses your actual cash, so two identical properties with the same cap rate can produce very different CoC returns depending on the down payment, interest rate, and loan term.
Use cap rate to compare properties on equal footing. Use Cash-on-Cash to decide whether the deal in front of you actually fits the cash you have to deploy.
What a strong Cash-on-Cash looks like
Most rental investors in metro Atlanta target an 8% to 12% Cash-on-Cash return at acquisition. Below roughly 5% the rental is being bought for appreciation more than cash flow; above 12% the seller has usually mispriced the property or the rent assumption is being pushed too hard. Either case is worth a second look.
Leverage is the lever. Putting less cash down boosts CoC as long as the mortgage payment still leaves positive cash flow — but the same lever cuts the other way when rates rise or rent softens. A deal that pencils at 25% down can flip to negative CoC at 15% down even if nothing else changes.
From a calculator to a real underwrite
A Cash-on-Cash number is only as good as the rent and operating cost assumptions feeding it. A full Comparative Market Analysis (CMA) goes further: it pulls comparable rents nearby, weights leased units by how similar they are to your subject, and runs the rental strategy alongside flip and ground-up so you can see which one this property is really priced for.
Fundry builds that full analysis on any Georgia address for free. Create a free account and let the comparable rents come to you.
Frequently asked questions
What is Cash-on-Cash (CoC) return?+
Cash-on-Cash (CoC) return measures the annual pre-tax cash flow a rental produces divided by the actual cash you put into the deal. It answers a simple question: for every dollar of your own money in the property, how many cents come back each year after the mortgage and operating costs?
How do you calculate Cash-on-Cash return?+
The formula is annual pre-tax cash flow divided by total cash invested, expressed as a percentage. Annual cash flow is your rent, minus vacancy, operating expenses, and mortgage payments. Total cash invested is your down payment plus closing costs, lender fees, and any rehab cash you spent up front.
What is the difference between Cash-on-Cash and cap rate?+
Cap rate ignores financing — it is Net Operating Income (NOI) divided by purchase price, so it tells you what an all-cash buyer would earn. Cash-on-Cash includes the mortgage. Two identical properties with the same cap rate can have very different CoC returns depending on the down payment, interest rate, and loan term.
What is a good Cash-on-Cash return?+
Most rental investors target an 8% to 12% Cash-on-Cash return at acquisition, with 10% being a common rule of thumb in metro Atlanta. The right target depends on the strategy: long-term appreciation plays often accept lower CoC, while pure cash-flow strategies push for higher.
How does leverage change Cash-on-Cash?+
More leverage (a smaller down payment) shrinks the cash you have invested, so a deal that breaks even on cap rate can still produce a strong CoC return — as long as the mortgage payment leaves room for positive cash flow. Push leverage too far and the debt service eats the rent, sending CoC negative.
What counts as "total cash invested"?+
Every dollar of your own money that the property needed to acquire and stabilize: down payment, lender and title closing costs, points and origination fees, any rehab paid in cash before the property was rent-ready, and reserves you had to escrow. If you borrowed it, it does not count here — only the cash you actually wrote a check for.
Where deals get decided
Search any Georgia address. Fundry pulls comparable rents, builds the cash flow, and runs the full deal — flip, ground-up, or rental. Free.
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