Property ownership
Rental cash on cash return
Compare annual pre-tax cash flow to initial cash invested.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
annual cash flow/initial cash invested.
Cash flow follows financing payments and relevant cash expenses. Initial cash invested includes actual acquisition cash and initial expenses, not the full financed property value. No tax calculation.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Annual pre-tax cash flow (currency/year): Annual PRE-TAX cash after relevant cash costs/financing; not NOI.
- Initial cash invested (selected currency): Actual initial CASH invested including acquisition cash expenses, not financed property value.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Annual cash-on-cash return is 6.00 % for the illustrative inputs below.
Example inputs
- Annual pre-tax cash flow: 6,000.00 currency/year
- Initial cash invested: $100,000.00
- Annual cash-on-cash return
- 6.00 %
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Compare annual pre-tax cash flow to initial cash invested.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.