All Tools

calculator

Cash-on-Cash Return Calculator

Calculate cash-on-cash return on a small bay acquisition from down payment, closing costs, NOI, and annual debt service.

Deal Details
Enter acquisition price, financing, and income to calculate CoC

Down payment: $300,000

Annual NOI. Pull this from the NOI calculator if you haven't calculated it yet

Total annual principal + interest. Check DSCR against the DSCR calculator to confirm the loan clears typical lender minimums

Results
Cash-on-cash return analysis
9.69%
Cash-on-Cash Return
Annual Pre-Tax Cash Flow ÷ Total Cash Invested
Total Cash Invested$320,000
Loan Amount$900,000
Annual Cash Flow$31,000
Monthly Cash Flow$2,583.33
Going-In Cap Rate8.00%

Reading This Number

  • Cap rate values the property independent of financing. CoC isolates the effect of leverage on your actual cash return.
  • Leverage raises CoC above the cap rate when the loan rate is lower than the cap rate, and lowers it when the loan rate is higher.
  • Also check break-even occupancy to see how much vacancy this deal can absorb before cash flow turns negative.

Cross-check this deal with the NOI calculator, cap rate calculator, or DSCR calculator.

For informational and illustrative purposes only. Not financial, legal, tax, or investment advice.