Cash-on-Cash Return Calculator | Annual Cash Flow / Cash Invested | Lofty

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Cash-on-Cash Return Calculator

Enter the cash you put in (down payment, closing costs, initial repairs) and the property's income and costs to see your cash-on-cash return, annual cash flow, and monthly cash flow.

Your numbers

Property
Down payment$Closing costs$Rehab / initial repairs$

Income

Monthly rent$

Expenses

Vacancy rate%
Monthly operating expenses$
Taxes, insurance, repairs, management, HOA, and reserves.

Financing

Monthly mortgage payment$

Overview

What is a cash-on-cash calculator?

A cash-on-cash return calculator divides a rental property's annual pre-tax cash flow by the total cash invested: down payment, closing costs, and upfront repairs, to show the yearly yield on the actual money you put into the deal.

How investors usually read these numbers

Metric	Often strong	Watch out	Why it matters
Cash-on-cash return	8% to 12%+	Below 5%	The core yield on the money you actually invested, after financing.
Monthly cash flow	$200+ per unit	Negative	Dollar cushion available to absorb vacancies and repairs before the deal costs you money.
Cash invested vs purchase price	25% to 30% (with closing and rehab)	Under 20% with tight cash flow	Thin cash positions boost the ratio but leave no margin when expenses surprise.
Vacancy assumption	8% to 10%	0% to 3%	Underwriting at near-full occupancy is the easiest way to inflate cash-on-cash on paper.

How to run a cash-on-cash analysis

Total the cash you are putting in
Add your down payment, closing costs, and any upfront repairs or make-ready costs. This is the denominator of the return.
Enter monthly rent and other income
Use signed leases or local comps, plus any parking, laundry, or pet fee income.
Set vacancy and operating expenses
Apply a realistic vacancy rate (8% to 10% is standard) and include taxes, insurance, repairs, reserves, management, and HOA dues.
Enter your mortgage payment
Use the actual principal-and-interest payment from your loan quote. If you have no loan, enter $0, the result then approximates an unleveraged yield on cash.
Read cash-on-cash, annual, and monthly cash flow
Compare the return against the 8% to 12% bar many investors target, and stress-test with higher vacancy or expenses.

The math behind the result

Core formulas

Total cash invested = down payment + closing costs + initial repairs.
Effective monthly income = rent x (1 - vacancy rate) + other income.
Monthly cash flow = effective income - operating expenses - mortgage payment.
Annual pre-tax cash flow = monthly cash flow x 12.
Cash-on-cash return = annual pre-tax cash flow / total cash invested.

Expert takeaways

Cash-on-cash is the honest yield on your money. Cap rate rates the property; cash-on-cash rates your deal, with your loan, your closing costs, and your rehab budget in the denominator.
Count every dollar of cash in. Skipping closing costs and initial repairs is the most common way investors flatter this number.

Key terms in plain English

Cash-on-cash return: Annual pre-tax cash flow / cash invested.
Total cash invested: Down payment + closing costs + initial repairs.
Pre-tax cash flow: Income minus all expenses and debt service.
Cap rate: NOI / property value, before financing.
IRR: Time-weighted total return across the hold.

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