Cash-on-Cash Return Calculator
Breakdown
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What Is Cash-on-Cash Return?
Cash-on-cash return measures your annual cash profit (or loss) as a percentage of the actual cash you invested - your deposit plus purchase and setup costs. Unlike total return, it excludes capital growth, focusing purely on income performance.
Why Use Cash-on-Cash Return?
This metric is particularly useful for comparing the income-generating efficiency of different properties or even different asset classes, since it isolates the cash component of your return from speculative capital growth.
Cash-on-Cash vs Total Return
A property with a low or negative cash-on-cash return might still deliver strong total returns if capital growth is significant - this is the typical trade-off with negatively geared growth-focused properties versus positively geared income-focused properties.
Estimates only. Does not include capital growth, tax effects, or selling costs. Not financial advice.