About this tool
Cash-on-cash measures the post-debt yield on the actual money you put in (down payment + closing costs + initial repairs). It accounts for leverage in a way cap rate does not.
Formula
CoC = annualCashFlow / cashInvested × 100
Worked example
$6,000 annual cash flow on $80,000 invested → 7.5 % cash-on-cash.
Notes
Use this when comparing leveraged investments. 8–12 % is generally considered healthy in the US residential market.