CRE Tools · Returns
Cash-on-Cash Return Calculator
Measure the annual cash a property returns relative to the cash an investor actually put in.
Retail Blueprint · Calculator
Cash-on-Cash = Cash Flow ÷ Cash Invested
NOI minus annual debt service.
Cash-on-cash return
10.00%
A return is neither good nor bad on its own; it depends on risk, financing, and the investor's objectives.
Understand the metric
01
What this metric means
Cash-on-cash return compares one year of pre-tax cash flow (NOI minus debt service) with the total cash invested. It reflects the investor's position, including the effect of financing.
02
Why it matters
Cap rate evaluates property operating income relative to property value. Cash-on-cash return evaluates annual cash return relative to the investor's actual cash invested. Leverage can make the two diverge significantly.
03
How it is calculated
- Cash-on-cash = Annual pre-tax cash flow ÷ Total cash invested
- Cash flow = NOI − Annual debt service
- Cash invested = Down payment + Closing costs + Upfront improvements + Other equity
04
Related concepts
- Cap rate
- Debt service and leverage
- Total cash invested vs. purchase price
- Internal rate of return (multi-year)
Watch & Learn · In production
Cap rate vs. cash-on-cash — Retail Blueprint video
An original Retail Blueprint video will appear here when published.
Retail Blueprint tools are provided for educational and informational purposes only. Results are estimates based on the information entered and simplified assumptions. They should not be considered investment, financial, lending, legal, tax, or accounting advice. Actual property performance, financing terms, expenses, returns, and valuation may differ.