Cash-on-Cash Return Calculator
Calculate your annual cash-on-cash return for a rental property based on actual cash invested and cash flow.
Understanding Cash-on-Cash Return in 2026
Cash-on-cash return is the metric real estate investors use most when evaluating leveraged rental properties. Unlike cap rate (which ignores financing) or total return (which includes speculative appreciation), CoC measures the actual cash you receive each year relative to the actual cash you deployed. It's the closest real estate equivalent to dividend yield on a stock.
In 2026, with 30-year investor mortgage rates around 7-7.5%, achieving positive CoC on residential rentals requires either a substantial down payment (to reduce debt service), below-market purchase prices, or above-market rents. Markets with 5-6% cap rates and 7% financing rates produce negative leverage — every dollar borrowed earns less than it costs. Investors in these markets typically prioritize appreciation over cash flow.