CASH-ON-CASH RETURN

Cash-on-cash return calculator

Know your actual return on the cash you put in, not the purchase price. Underlytix models cash-on-cash return against your real down payment, closing costs, and rehab, no personal information required.

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WHAT CASH-ON-CASH RETURN MEANS

The return on the cash you actually put in

Cash-on-cash return measures annual pre-tax cash flow against the actual cash invested, down payment, closing costs, and any upfront repairs, not the property's purchase price. It is the number that tells you how hard your invested dollars are working, independent of financing structure.

HOW UNDERLYTIX EVALUATES IT

From property inputs to a return figure

1

Total your actual cash invested CASH IN

Down payment, closing costs, and any upfront repairs or reserves  the cash that actually left your account, not the purchase price.

2

Calculate annual pre-tax cash flow CASH FLOW

Gross rent minus vacancy, operating expenses, and debt service (principal and interest). What is left over each year before taxes.

3

Divide cash flow by cash invested CoC %

Annual pre-tax cash flow divided by total cash invested. The result is matched against typical investor benchmarks in DSCR loan readiness and lender fit analysis.

RETURN BENCHMARKS

What your cash-on-cash return means

CoC ReturnBenchmarkWhat it signals
10%+Strong ReadyOutperforms most markets  check assumptions aren't optimistic
810%Solid ReadyCompetitive for most rental strategies
68%ModerateCommon in appreciation-focused or lower cap-rate markets
Below 6%Weak Not yetReturn likely driven by an appreciation bet, not cash flow
EXAMPLE OUTPUT

A cash-on-cash return on a rental

Property: $265,000 single-family rental, 25% down

Result: 8.4% cash-on-cash return. Cash invested $73,150 (down payment + closing costs + $2,400 rehab). Annual pre-tax cash flow $6,146 after PITIA and a realistic vacancy factor. Falls in the solid tier. Flag: raising rent $75/mo or reducing vacancy assumptions would push this into the strong tier.

COMMON QUESTIONS

Cash-on-cash return questions

What is cash-on-cash return? ▾
It is annual pre-tax cash flow divided by the actual cash you invested in a property, down payment, closing costs, and upfront repairs. Unlike cap rate, it accounts for financing, so it reflects the real return on the dollars you put in, not the total purchase price.
What is a good cash-on-cash return? ▾
Most investors target 8% or higher, though this varies by market and strategy. Above 10% is strong, 6-8% is moderate and common in appreciation-focused markets, and below 6% usually means the return depends on price appreciation rather than cash flow.
How is cash-on-cash return different from cap rate? ▾
Cap rate measures return as if the property were bought in cash, ignoring financing. Cash-on-cash return uses your actual cash invested and subtracts debt service from cash flow, so it reflects leverage. Two properties with the same cap rate can have very different cash-on-cash returns depending on financing terms.
Does a higher cash-on-cash return mean a better deal? ▾
Not always. A high cash-on-cash return can come from aggressive leverage, which raises risk if rents dip or rates rise at refinance. Underlytix pairs cash-on-cash return with DSCR loan readiness so you can see return and debt-service risk side by side.
Does Underlytix require personal information to calculate this? ▾
No. Underlytix does not require personal information to run a cash-on-cash return calculation, unlike a lender application. You get a score based on the deal inputs you provide.

Know your return before you commit capital.

Run the numbers in about 60 seconds. No personal information required.

Calculate Your Return