Cash on cash return measures annual cash flow ÷ total cash invested. Unlike cap rate, it accounts for your financing — showing the actual return on the money you put in.
Cash on Cash Return
5.4%
Where Rent Goes
Cash Invested Breakdown
What does this mean?
A 4–8% cash on cash return is solid for most markets. You're earning a reasonable return on your invested capital while building equity through the mortgage paydown.
Keep running the numbers
You know your cash return. Now check if lenders agree with your deal.
Calculate the capitalization rate to evaluate a property's potential return based on its net operating income.
Calculate the Debt Service Coverage Ratio to see if a property's rental income covers its loan payments.
Calculate your monthly mortgage payment, total interest, and see a full cost breakdown.
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