REDOSFree Cash-on-Cash Return Calculator
The only return that measures what your own money earned. Enter the deal and see it instantly. Free. No login.
The investment
The income
The loan
$1,062 a year on $52,300 of your own cash.
Weak — the numbers don't work yet.
Cash-on-cash 2.0% — weak for a rental.
How the return is built
You don't just need the numbers. You need to know what to fix.
Free calculators hand you a spreadsheet. REDOS reads your deal and tells you exactly where it's weak — and how to save it.
2.0% return on your cash (aim 8%+). Push the purchase price down or add income (unit, storage, laundry, pets).
No spam. Unsubscribe anytime.
Like it? The full REDOS analyzer — unlimited deals, Deal Coach, save & compare — is one lifetime price. No $20/month forever. See the lifetime deal →
How to calculate cash-on-cash return
Cash-on-cash return is annual cash flow divided by the cash you actually put into the deal. It's the number that tells you what your own money earned — which is why it's the metric investors compare across deals, and across asset classes. A property can look cheap and still be a poor use of your capital.
- 1
Add up your real cash in
Down payment, closing costs, lender fees, rehab, and the reserves you had to set aside. Not the purchase price — only the money that left your account.
- 2
Calculate annual cash flow
Rent minus operating expenses minus the mortgage, times twelve. After reserves, not before.
- 3
Divide
Annual cash flow ÷ total cash invested. $4,000 a year on $50,000 invested is an 8% cash-on-cash return.
- 4
Compare honestly
Against your other options — another property, an index fund, paying down debt. Cash-on-cash is what makes those comparable.
One caveat worth knowing: cash-on-cash ignores appreciation, loan paydown, and tax benefits, so it understates the total return on a long-term hold. It also breaks down entirely on a BRRRR where you pull all your cash back out — with zero cash left in, the return is mathematically infinite. That's not a bug in the math; it's the whole point of the strategy.
Frequently asked questions
What is a good cash-on-cash return?
Most rental investors target 8% or better. Below about 5% you're taking on the work and risk of being a landlord for something a passive index fund might match — though a strong appreciation market can justify a lower number.
What's the difference between cash-on-cash and ROI?
Cash-on-cash counts only actual cash flow against actual cash invested, in a single year. Full ROI also includes appreciation, principal paydown, and tax benefits. Cash-on-cash is the stricter, more honest short-term measure.
What's the difference between cash-on-cash and cap rate?
Cap rate is NOI divided by the property's price and ignores financing entirely — it describes the property. Cash-on-cash divides by your cash and includes the mortgage — it describes your deal. Two investors can buy the same property at the same cap rate and get completely different cash-on-cash returns.
How does an all-cash purchase change it?
With no loan there's no mortgage payment, so cash flow is much higher — but you invested far more cash. All-cash deals usually show a lower cash-on-cash return and much better safety, since there's no debt to cover during a vacancy.