Rental Cash-on-Cash Return Calculator

Calculate your rental property investment returns

What is this? Calculate rental property cash-on-cash return and IRR. See investment performance metrics for buy-and-hold real estate.

Who it's for: Business professionals, investors, and financial planners.
Purchase Details
Monthly Income & Expenses
Your Returns
Cash-on-Cash Return
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Annual return on cash invested
Annual Cash Flow
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Monthly Cash Flow
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Total Invested
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For educational purposes only. Not financial advice. Consult a real estate professional.

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Frequently Asked Questions

What is a good cash-on-cash return?

8-12% is a solid target for rental properties. Above 12% is excellent. Below 5% may not justify the effort and risk of owning real estate. Location, vacancy, and maintenance costs all affect the real CoC.

What expenses should I include in CoC calculation?

Include: mortgage principal + interest, property taxes, insurance, property management (even if self-managing), maintenance reserves (typically 1% of value/year), vacancy allowance (5-10%), and HOA fees. Exclude principal paydown and appreciation.

How does leverage improve CoC?

Using a mortgage amplifies returns because you control a larger asset with less cash down. If you buy a $200K property with 20% down ($40K) and it nets $8K/year, your CoC is 20% — but the property may have appreciated significantly beyond your down payment.

What is the 2% rule?

The 2% rule: monthly rent should be at least 2% of the purchase price. A $200K property should rent for $4,000+/month. This is a quick screening tool, not a guarantee — always run actual numbers.

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