Cash-on-Cash Return Calculator

Measure the annual return on your actual cash investment in a commercial property. Essential for comparing leveraged investments.



Investment Details

Property & Financing
Title, legal, lender fees, etc.
Income
CAM reimbursements, parking, etc.
Operating Expenses
Utilities, landscaping, reserves, etc.
Debt Service
Total annual mortgage payments (P+I)

Return Analysis

Cash-on-Cash Return
8.42%
Total Cash Invested
$675,000
Net Operating Income (NOI)
$189,400
Annual Pre-Tax Cash Flow
$56,850
Monthly Cash Flow
$4,737.50
Debt Service Coverage Ratio
1.31x

Formula Used

Cash-on-Cash Return =
Annual Pre-Tax Cash Flow ÷
Total Cash Invested × 100

Understanding Cash-on-Cash Return

Cash-on-Cash Return (CoC) measures the annual return based on the actual cash you invested in a property, not the total property value. It's one of the most important metrics for evaluating leveraged real estate investments.

  • Accounts for financing costs unlike Cap Rate
  • Shows the real return on your equity investment
  • Useful for comparing properties with different financing structures
  • Higher leverage typically increases CoC return (with added risk)

CoC Return vs. Cap Rate

While Cap Rate measures unlevered return on the property itself, Cash-on-Cash Return shows your actual return as an investor. Key differences:

  • All-cash purchase: CoC Return equals Cap Rate
  • Leveraged purchase: CoC Return typically exceeds Cap Rate (positive leverage)
  • If loan rate exceeds Cap Rate, CoC will be lower (negative leverage)
  • CoC includes debt service; Cap Rate does not