Cash-on-Cash Return Calculator
Measure the annual pre-tax cash yield on the equity invested in a leveraged property, with DSCR, amortisation and a five-year equity projection.
- Target CoC
- 8–12%
- Leveraged rental
- DSCR Floor
- 1.25×
- Lender minimum
- LTV
- 70–80%
- Typical investor
Formula & Statutory Rule
Formula
cash_on_cash = annual_pre_tax_cash_flow / cash_invested × 100
Statutory Rule
DSCR = NOI / annual_debt_service; cash_invested = down_payment + closing + rehabRegional Benchmark Reference
| Jurisdiction / Tier | Rate or Limit | Statutory Note |
|---|---|---|
| DSCR minimum | 1.25× | Agency lender |
| Target CoC | 8–12% | Leveraged |
| Typical LTV | 75% | Investor loan |
Frequently Asked Questions
What is cash-on-cash return?
It is annual pre-tax cash flow divided by the total cash invested, expressed as a percentage.
What is a good DSCR?
Most lenders require at least 1.25×, meaning NOI covers debt service by 25%.
Does cash-on-cash include appreciation?
No. It measures cash yield only; appreciation is a separate total-return component.
How is cash invested defined?
Down payment plus closing costs plus any rehab capital.