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Cash On Cash Return Calculator

Work out cash on cash return instantly with clear inputs, formula shown and shareable results.

About Cash On Cash Return Calculator

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.

Formula

Cash-on-cash and DSCR

CoC = (NOI - debt service) / cash invested; DSCR = NOI / debt service

Worked example

With the default values below, Cash On Cash Return Calculator returns Cash-On-Cash Return of 9.600%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual Net Operating Incomeminimum 0
620,000
Annual Loan Paymentsminimum 0
380,000
Cash You Put Inminimum 0
2,500,000

Results

Cash-On-Cash Return
9.600%
Annual Cash Flow After Debt
$240,000.00
Monthly Cash Flow
$20,000.00
Debt Service Coverage Ratio
1.632

Step by step

  1. 1Values used
  2. 2Cash-on-cash and DSCR
  3. 3Cash-On-Cash Return= 9.600
  4. 4Annual Cash Flow After Debt= 240,000.00
  5. 5Monthly Cash Flow= 20,000.00
  6. 6Debt Service Coverage Ratio= 1.632

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • 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.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

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.

Frequently Asked Questions

Why ignore appreciation?

Because it is unrealised and uncertain. Cash-on-cash tests whether the deal works on income alone.

What DSCR do lenders require?

Commonly 1.20 to 1.35 for stabilised property, higher for development or single-tenant risk.

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