Cash on cash return calculator.
Enter the net operating income, the price and the loan. See the return on the cash you put in, and how it changes with the financing.
Your deal
Your result
Cash on cash
8.77%
- Loan
- $3,900,000
- Annual debt service
- $295,808
If the financing changes
| 55% loan | 65% loan | 75% loan | |
|---|---|---|---|
| 5.50% rate | 9.45% | 10.20% | 11.56% |
| 6.50% rate | 8.51% | Your case8.77% | 9.25% |
| 7.50% rate | 7.52% | 7.27% | 6.83% |
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One page: your inputs, the return, the loan figures, the financing table and the formula.
How it is computed
The year of cash flow as a share of the cash you put in.
The level monthly payment, where r is the monthly rate and n the number of months. Annual debt service is twelve payments.
What the property pays you after the loan payments.
Cash on cash is the equity dividend rate in Appraisal Institute usage. The payment is the standard level payment amortization formula.
What counts as cash invested.
The cash you put in at purchase: the price minus the loan, plus closing costs if you enter them. The loan itself is not cash you invested.
What cash on cash leaves out.
It looks at one year of cash flow before tax against the cash invested. It does not count the sale, the loan balance you pay down or income taxes, so it is not a total return.
Questions.
Is cash on cash the same as return on investment?
Why does a larger loan change the return?
What if debt service is larger than the net operating income?
Next in the sequence
- Net operating income calculator
Work out the yearly income first.
- Cap rate calculator
Turn the income into a rate and test a price.
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Share your numbers and we’ll tell you honestly whether AI moves the needle for your team.
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