Free Real Estate Investor Tool · 2025

Rental Property Cash-on-Cash Return Calculator

Enter your deal numbers and instantly see CoC return, cap rate, NOI, monthly cash flow, and whether this property is worth buying.

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1 — Purchase details
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2 — Financing
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3 — Income
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4 — Annual operating expenses
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How to Use This Calculator

Enter your deal numbers above — purchase price, financing terms, expected rent, and all operating expenses — and this tool instantly computes every metric a real estate investor needs to evaluate a rental property.

What is Cash-on-Cash Return?

Cash-on-cash return (CoC) measures your annual pre-tax cash flow as a percentage of the total cash you invested out of pocket. It's the most important metric for leveraged rental investments because it measures the return on your actual dollars invested, not the total property value.

Formula: CoC Return = Annual Pre-Tax Cash Flow ÷ Total Cash Invested × 100

What Is a Good Cash-on-Cash Return?

CoC ReturnVerdictTypical Market
Below 4%PoorHot coastal markets (NYC, LA, SF)
4% – 6%Below averageAppreciation-driven markets
6% – 8%AverageMost mid-tier US markets
8% – 12%GoodCash-flow markets (Midwest, South)
12%+ExcellentHigh-yield markets or great deals

Cap Rate vs. Cash-on-Cash Return

Cap rate measures a property's income potential independent of financing. Cash-on-cash return accounts for your actual mortgage payment and out-of-pocket cash. A property can have a strong cap rate but poor CoC if you're over-leveraged.

Frequently Asked Questions

What expenses should I include in a rental property analysis?
Include property taxes, insurance, property management (typically 8–12% of rent), maintenance and capital expenditures (budget 1% of property value per year), vacancy loss (5–10% of gross rent), HOA fees, utilities you pay, and any other recurring costs.
What vacancy rate should I use?
Most investors use 5–10% depending on local market conditions. A 5% vacancy rate assumes the unit will be vacant about 18 days per year. In tight rental markets you might use 3–5%; in softer markets, 8–10% is more conservative.
Should I include property appreciation in my CoC calculation?
No. Cash-on-cash return only measures current income versus cash invested. It intentionally excludes appreciation, equity paydown, and tax benefits. This makes it the most conservative and most reliable way to compare deals.
What's the 1% rule in real estate?
The 1% rule states that monthly rent should be at least 1% of the purchase price (e.g., a $200,000 property should rent for $2,000/month). It's a quick screening tool, not a substitute for full analysis — use this calculator for accurate numbers.
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Enter your property details on the left and click Calculate My Returns to see your full investment analysis.

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