Cash-on-Cash Return Calculator
Calculate your cash-on-cash return on a rental property investment.
Compare annual cash flow to total cash invested.
Cash-on-Cash Return
Cash-on-Cash Return (CoC) measures the annual return on the actual cash you invested, not the total property value.
CoC Return = (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100
What counts as “Total Cash Invested”:
- Down payment
- Closing costs
- Renovation/rehab costs
- Any other out-of-pocket expenses
What is “Annual Pre-Tax Cash Flow”:
- Annual rental income minus all operating expenses and debt service (mortgage payments)
CoC Return benchmarks:
| CoC Return | Assessment |
|---|---|
| Over 12% | Excellent |
| 8 – 12% | Good |
| 5 – 8% | Average |
| 2 – 5% | Below average |
| Under 2% | Poor (may underperform index funds) |
Note: CoC return does not include appreciation, principal paydown, or tax benefits. It purely measures cash flow relative to cash invested.