Cash-on-Cash Return Rental Properties — All US MarketsAll Cash Purchase →
Cash-on-Cash return measures the annual return on the cash actually invested — useful when financing with a mortgage, since the cash invested is the down payment plus closing costs, not the full purchase price.
Formula:
- Cash Invested = Down Payment + Closing Costs
- Cash Flow = (Est. Rent × 12 − Tax − Insurance − Maintenance − Vacancy − Mgmt) − Annual Mortgage
- Cash-on-Cash = Cash Flow ÷ Cash Invested