Cash on Cash Return Calculator
This calculator estimates the pre-tax cash-on-cash return for a rental investment by comparing annual pre-tax cash flow to the total cash invested at acquisition. It uses user-supplied income, vacancy, expense and initial cost values to produce a clear percentage figure.
Use the inputs to reflect conservative assumptions (realistic vacancy and expense reserves). Results are illustrative and meant for comparison and screening, not as final underwriting.
Governance
Record 1c22ad5c6e3d • Reviewed by Fidamen Standards Committee
Inputs
Results
Annual Cash Flow (pre-tax)
$4,800.00
Total Cash Invested (initial outlay)
$53,000.00
Cash-on-Cash Return
—
| Output | Value | Unit |
|---|---|---|
| Annual Cash Flow (pre-tax) | $4,800.00 | USD |
| Total Cash Invested (initial outlay) | $53,000.00 | USD |
| Cash-on-Cash Return | — | % |
Visualization
Methodology
Cash-on-cash return = (Annual pre-tax cash flow) / (Total cash invested) expressed as a percentage. Annual pre-tax cash flow is effective gross income minus operating expenses and annual debt service.
This tool applies standard numeric best practices for stability and traceability. It follows guidance on secure data handling and testing from NIST and ISO for information security and authentication, and relies on IEEE floating-point handling recommendations for numeric operations. Users should validate with their own accounting and lender figures before relying on results.
Worked examples
Example: $24,000 gross rent, 5% vacancy, $8,000 operating expenses, $10,000 annual debt service, $50,000 down payment, $3,000 closing costs. Effective gross income = 24,000 × 0.95 = 22,800. Annual cash flow = 22,800 − 8,000 − 10,000 = 4,800. Total cash invested = 50,000 + 3,000 = 53,000. Cash-on-cash = (4,800 / 53,000) × 100 ≈ 9.06%.
If total cash invested is zero in your inputs, the tool will not produce a meaningful percentage and results should be treated as invalid until initial investment inputs are provided.
F.A.Q.
Does this calculator include tax effects or depreciation?
No. This tool calculates pre-tax cash-on-cash return. It excludes income tax, depreciation, and other tax-related items. For after-tax returns include tax impacts in cash flow inputs externally.
Should I use pro forma or historical numbers?
Use the figures that best match your decision point. For acquisition screening, use conservative pro forma estimates. For performance measurement, use actual historical income and expenses.
What if I have no mortgage?
Set annual debt service to zero. The calculator will compute cash-on-cash using only operating cash flow divided by total cash invested.
How accurate is the percentage?
The numerical result is precise to standard floating-point arithmetic, but accuracy depends on input quality. Treat outputs as estimates and cross-check with detailed underwriting models. See the citations for standards on numeric and security practices.
Sources & citations
- National Institute of Standards and Technology (NIST) — https://www.nist.gov/
- International Organization for Standardization (ISO) — https://www.iso.org/
- IEEE Standards Association — https://www.ieee.org/
- Occupational Safety and Health Administration (OSHA) — https://www.osha.gov/
- HUD — FHA Single Family Housing Policy Handbook 4000.1 — https://www.hud.gov/program_offices/housing/sfh/handbook_4000-1
- HUD — Property Valuation and Appraisals (HUD 4155.2) — https://www.hud.gov/sites/documents/4155-2_4.pdf
- Fannie Mae — Selling Guide — https://selling-guide.fanniemae.com/
Further resources
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
Record ID: 1c22ad5c6e3dWhat changed (latest)
v1.0.0 • 2025-11-27 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
What changed (latest)
v1.0.0 • 2025-11-27 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Engine
v1.0.0
Data
Baseline (no external datasets)
Content
v1.0.0
UI
v1.0.0
Governance
Last updated: Nov 27, 2025
Reviewed by: Fidamen Standards Committee (Review board)
Credentials: Internal QA
Risk level: low
Reviewer profile (entity)
Fidamen Standards Committee
Review board
Internal QA
Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person
Semantic versioning
- MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
- MINOR: New features or fields that do not change existing outputs for the same inputs.
- PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.
Review protocol
- Verify formulas and unit definitions against primary standards or datasets.
- Run golden-case regression suite and edge-case suite.
- Record reviewer sign-off with credentials and scope.
- Document assumptions, limitations, and jurisdiction applicability.
Assumptions & limitations
- Uses exact unit definitions from the Fidamen conversion library.
- Internal calculations use double precision; display rounding follows the unit's configured decimal places.
- Not a substitute for calibrated instruments in regulated contexts.
- Jurisdiction-specific rules may require official guidance.
Change log
v1.0.0 • 2025-11-27 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: 58b7790b05a1