Advertisement
728×90
Cash on Cash Return Calculator
The metric most real estate investors actually live by: annual cash flow ÷ total cash invested.
Cash invested
Cash flow
Rent - mortgage - tax - insurance - maintenance reserves
Cash on cash return
5.68%
Below typical
Annual cash flow
$5,400
Total cash invested
$95,000
Investor rule of thumb: Many BRRRR and buy-and-hold investors target 8-12% cash-on-cash. Below 6% means you're betting on appreciation; above 15% means verify the numbers.
Analysis & insights
Your cash-on-cash return is 5.7% — that's $5,400/year in cash flow on $95,000 of money you actually put in. Below the typical 8-12% investor target. Look for specific upside levers OR accept that you're betting on appreciation. Remember: cash-on-cash doesn't include appreciation, principal paydown, or tax shelter — your true total return is typically 3-7 percentage points higher.
Market range
In the typical range for stabilized, leveraged residential property in 2025.
Risk & benchmark gauge
Current band
Below market
5.7% cash-on-cash
Industry benchmarks
- Your cash-on-cash5.7%
- Stocks (S&P 500 long-term)~10%
- BRRRR investor target12%+
- Buy-and-hold investor target8-12%
- HYSA (current)4-5%
Key insights
Cash-on-cash vs cap rate
Cap rate is the unlevered yield (as if all cash). Cash-on-cash includes your financing. A 6% cap rate property can produce 15% cash-on-cash with good leverage — or negative with bad.
Versus S&P 500 alternative
S&P 500 historically returns ~10% with zero management effort. Real estate needs to beat this materially OR offer specific advantages (appreciation, tax shelter) to justify the work.
Net of $450/month in your pocket
Cash flow is the buffer that lets you survive vacancies, repairs, and market downturns. Always underwrite to positive cash flow on conservative assumptions.
Scenario analysis
Current scenario
5.7%
$5,400/yr cash flow ÷ $95,000 invested.
Rent +$100/mo
6.9%
+1.26 pts
Achievable through unit improvements, RUBS billing, or market correction.
Refi + lower payment $200/mo
8.2%
+2.53 pts
When rates drop, refinancing into a lower payment directly raises cash-on-cash.
Vacancy spike (-$200/mo)
3.2%
-2.53 pts
2 months of vacancy over 12 months has this impact. Plan for ~5-8% vacancy reserve.
Recommended actions(5)
Identify 3 specific upside levers
High priorityCash-on-cash this low only works if you have a clear path to 8%+ within 12-24 months. List the specific rent increases, expense cuts, or refinance opportunities.
Impact: If you can't articulate 3 levers, walk away.
Set aside reserves: 3-6 months of PITI + 1% of property value annually
High priorityCash-on-cash calculations omit lumpy capex (roof, HVAC, sewer). Reserve aggressively so a single $8K repair doesn't wipe out a year of cash flow.
Impact: A $400K property needs ~$4K/year of capex reserves on top of monthly maintenance.
Refinance when rates drop 0.75%+
Medium priorityLower interest payment is direct cash-on-cash improvement. Run the break-even on closing costs.
Find the Best Mortgage Rate
* Partner links. CalcProLabs may earn a referral fee at no cost to you.
Related Calculators
This tool is for educational purposes only and does not constitute financial, tax, or investment advice. Consult a qualified financial professional for advice specific to your situation.
Advertisement
300×250
Advertisement
728×90