Calculator Inputs
Enter annual property income, annual expenses, financing, and upfront cash needs. Results appear above this form after submission.
Example Data Table
| Scenario | Purchase Price | Total Cash Invested | NOI | Annual Debt Service | Pre-Tax Cash Flow | Cash on Cash ROI |
|---|---|---|---|---|---|---|
| Duplex A | $250,000 | $79,500 | $24,920 | $15,480 | $9,440 | 11.87% |
| Triplex B | $420,000 | $118,000 | $36,400 | $24,600 | $11,800 | 10.00% |
| Single Family C | $185,000 | $48,500 | $14,900 | $9,900 | $5,000 | 10.31% |
Formula Used
Gross Scheduled Income = Annual Rent + Other Income
Vacancy Loss = Gross Scheduled Income × Vacancy Rate
Effective Gross Income = Gross Scheduled Income − Vacancy Loss
Total Operating Expenses = Taxes + Insurance + HOA + Repairs + Management + Utilities + Capital Expenditures + Other Expenses
NOI = Effective Gross Income − Total Operating Expenses
Pre-Tax Cash Flow = NOI − Annual Debt Service
Total Cash Invested = Down Payment + Closing Costs + Rehab Costs + Lender Fees + Initial Reserves
Cash on Cash ROI = (Pre-Tax Cash Flow ÷ Total Cash Invested) × 100
How to Use This Calculator
- Enter the purchase price and any renovation budget.
- Add all upfront cash items, including closing costs and reserves.
- Input annual rental income and any extra annual income.
- Enter the vacancy rate to reflect expected downtime.
- Fill in yearly operating expenses for realistic ownership costs.
- Enter the total annual debt service from your loan payments.
- Click the calculate button to view ROI and supporting metrics.
- Use CSV or PDF export to save the output.
FAQs
1. What does cash on cash ROI measure?
It measures annual pre-tax cash flow against the actual cash you invested upfront. It helps compare leveraged rental properties more directly than using purchase price alone.
2. Why is this different from cap rate?
Cap rate ignores financing and focuses on property income relative to cost. Cash on cash ROI includes debt payments, so it reflects the effect of leverage on your annual cash return.
3. Should reserves be included in cash invested?
Yes, many investors include reserves because that money is tied up in the deal at closing. Including it usually gives a more conservative and practical return figure.
4. Is annual debt service the same as loan amount?
No. Loan amount is the borrowed principal. Annual debt service is the total yearly mortgage payment, usually including both principal and interest.
5. Can a property have a good cap rate but weak cash on cash ROI?
Yes. Heavy financing costs, high fees, or large cash requirements can reduce cash on cash ROI even when the property’s operating performance looks strong.
6. What is considered a strong cash on cash return?
That depends on market risk, property condition, financing terms, and investor goals. Many investors compare similar local deals instead of relying on one universal benchmark.
7. Should I use gross rent or collected rent?
Use realistic annual rent and include a vacancy factor. That creates a more dependable estimate than assuming every month is fully collected.
8. Does this calculator include taxes on profits?
No. This version focuses on pre-tax cash flow. Income taxes vary by ownership structure, deductions, and location, so they should be analyzed separately.