Cash-on-Cash Return Calculator

Unlike cap rate, cash-on-cash return accounts for financing — it measures the return on the actual dollars you put into the deal, which is why the same property can post very different cash-on-cash numbers at different down payment levels.

A smaller down payment increases leverage and can raise cash-on-cash return, but it also raises the mortgage payment and shrinks the cash flow cushion — the two effects pull in opposite directions.