Work out cash on cash return instantly with clear inputs, formula shown and shareable results.
Cash-on-cash return measures the cash left after debt service against the cash you actually invested, ignoring appreciation. The debt service coverage ratio alongside it shows whether the income comfortably covers the loan — lenders usually want at least 1.25.
Cash-on-cash and DSCR
CoC = (NOI - debt service) / cash invested; DSCR = NOI / debt service
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Because it is unrealised and uncertain. Cash-on-cash tests whether the deal works on income alone.
Commonly 1.20 to 1.35 for stabilised property, higher for development or single-tenant risk.