How it works
Annual cash flow = collected rent − operating costs − financing payments. Cash-on-cash return = cash flow / initial cash invested × 100.
Input definitions
- Annual collected rent
- Enter the value in the labeled unit.
- Annual operating costs
- Enter the value in the labeled unit.
- Annual financing payments
- Enter the value in the labeled unit.
- Initial cash invested including fees
- Enter the value in the labeled unit.
A worked example
- Annual collected rent
- 24000
- Annual operating costs
- 8000
- Annual financing payments
- 10000
- Initial cash invested including fees
- 60000
Assumptions & limits
Single-currency illustration using your entered amounts and rates, not a recommendation, approval or forecast. No automatic tax rules or market data.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.
Common questions
How is cash-on-cash return different from cap rate?
Cash-on-cash uses cash flow after financing and your initial cash investment. Cap rate uses property operating income before financing divided by property value.
How does Rental cash-on-cash return work?
Annual cash flow = collected rent − operating costs − financing payments. Cash-on-cash return = cash flow / initial cash invested × 100.
What are the limits of Rental cash-on-cash return?
Single-currency illustration using your entered amounts and rates, not a recommendation, approval or forecast. No automatic tax rules or market data.