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Cash-on-Cash Return Calculator
Cash-on-cash return measures the annual pre-tax cash flow a property returns on the actual cash you put in. Unlike cap rate, it reflects your financing.
Results
- Annual cash flow
- $5,100
- Monthly cash flow
- $425
- Cash-on-cash return
- 3.1%
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Valuation, comparables, risk flags, stress tests and your maximum offer — analyzed with AI.
Analyze the property with AIThe formula
Cash-on-Cash = Annual Pre-Tax Cash Flow ÷ Total Cash Invested
Cash invested includes down payment, closing costs, land transfer tax and any upfront capital work.
Worked example
- Purchase price $725,000 with 20% down = $145,000.
- Closing costs and Ontario land transfer tax add roughly $19,000, so cash invested is $164,000.
- NOI is $42,780 and annual debt service is $37,680.
- Annual cash flow = $42,780 − $37,680 = $5,100.
- Cash-on-cash = $5,100 ÷ $164,000 = 3.1%.
How to read the result
Leverage cuts both ways: a mortgage rate below the cap rate lifts cash-on-cash above the cap rate, and a rate above it drags cash-on-cash down.
Cash-on-cash is a single-year snapshot. It says nothing about appreciation, principal paydown or rent growth, which is why it should be read alongside IRR.
Compare the number to what the same cash would earn elsewhere at similar risk, then decide whether the illiquidity of real estate is worth the spread.
Frequently asked
Does cash-on-cash include principal paydown?
No. Principal repayment builds equity but is not cash in your pocket, so it sits outside this metric. Total return measures such as IRR capture it.
Is a negative cash-on-cash always a bad deal?
Not automatically, but it means you are funding the property from other income. That is a risk position that only makes sense with a clear, testable plan to raise NOI.
A calculator answers one question. PropertyEdge makes the whole decision.
Run the whole property — NOI, valuation, financing, risks, stress tests, your maximum offer and a BUY / NEGOTIATE / PASS verdict, with every assumption labelled.
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Ontario benchmarks by city
Local prices, rents, property tax and land transfer tax — the inputs this calculator needs.
- See Toronto benchmarks
- See Hamilton benchmarks
- See Mississauga benchmarks
- See Ottawa benchmarks
- See London benchmarks
- See Kitchener-Waterloo benchmarks
- See Burlington benchmarks
- See Oakville benchmarks
- See Brampton benchmarks
- See Niagara benchmarks
- See Guelph benchmarks
Other calculators
- Cap Rate Calculator
- DSCR Calculator
- Rental Property Calculator
- ROI Calculator
- Mortgage Calculator
- Maximum Offer Calculator
PropertyEdge provides analysis and estimates for informational purposes only. It is not investment, tax, legal or appraisal advice, and no return or investment outcome is guaranteed. Estimates are modelled from the assumptions shown and must be verified against leases, inspections, tax bills and municipal records before you make an offer.