Online Tool Store
Cash-on-Cash Return Calculator
Calculate cash-on-cash return for a property or business purchase from annual pre-tax cash flow and the cash actually put in.
🔒 This tool runs entirely in your browser. Your files are never uploaded to a server.
Finance
Cash-on-Cash Return Calculator
Frontend preview — no upload or external service.
Return result
9,600 of annual cash flow on 72,000 invested is a 13.3% cash-on-cash return — the same asset yields 4.8% unleveraged.
How the Cash-on-Cash Return Calculator works
- Add up the cash you actually put in: deposit, closing costs, and any work done before it earned.
- Use pre-tax cash flow after debt service, not net operating income.
- Compare the leveraged and unleveraged figures to see how much of the return is borrowing rather than the asset.
The method
Cash-on-cash measures annual cash flow against cash invested, deliberately ignoring appreciation, principal repayment, and tax.
cash-on-cash = annual pre-tax cash flow / total cash invested
9,600 on 72,000 is 13.3%. Debt raises this figure whenever borrowing costs less than the asset yields — and magnifies losses just as directly when it does not.
FAQ
How is this different from cap rate?
Cap rate measures the asset's yield with no financing, so it compares properties. Cash-on-cash measures your position, including the loan, so it compares investments.
Should appreciation be included?
Not here. Cash-on-cash is deliberately a cash-flow measure. Include appreciation and you need an IRR over a holding period instead.
Why does leverage make the number look so good?
Because the denominator shrinks faster than the numerator when borrowing is cheap. That is real, and it works identically in reverse when the asset underperforms the loan rate.
How we compare
| Feature | Online Tool Store | A spreadsheet | An advisor consultation |
|---|---|---|---|
| Leveraged and unleveraged view | ✓ | Manual | Sometimes |
| Excludes appreciation deliberately | ✓ | Varies | ✓ |
| No account | ✓ | ✓ | ✗ |
| Figures stay local | ✓ | ✓ | ✗ |
Cash-on-Cash Return Calculator shows the unleveraged figure alongside, so the part of the return that comes from borrowing is visible rather than flattering.