Cash-on-Cash Return Calculator
Measure your actual cash yield on invested capital.
What it does
Divides annual pre-tax cash flow by total cash invested (down payment + closing costs + initial repairs) to express your cash yield as a percentage.
Why it matters
Unlike cap rate, COC accounts for your specific financing terms. It tells you how much return you're getting on the dollars you personally put into the deal.
How to Use
- 1Calculate annual cash flow: Monthly cash flow × 12. Include all expenses plus mortgage payment.
- 2Calculate total cash invested: Down payment + closing costs + initial repairs + any reserves funded at close.
- 3Divide and multiply by 100: Many investors target 8–12% COC, but thresholds vary by market and strategy.
Cash-on-Cash Return Calculator
Cash-on-Cash Return12.00%
Best Practices & Benchmarks
- •Most investors target 8–12% COC for stabilized rentals; high-risk or value-add deals often require 15%+ to compensate for execution risk.
- •Include every upfront dollar in "total cash invested": down payment, closing costs, initial repairs, and any reserves funded at close.
- •COC measures year-one cash yield only — it ignores appreciation, equity paydown, and tax benefits. Use IRR for total-return comparisons.
- •Run your COC with conservative vacancy (8–10%) and a 10–20% contingency on expense estimates. Seller pro formas use best-case inputs.
- •In high-appreciation markets, investors sometimes accept 4–6% COC and rely on equity growth — this is a higher-risk bet; model the downside.
Want the full picture?
These calculators use your assumptions. Temelios pulls real comps and census data so your vacancy, rent, and expense inputs are grounded in reality.
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