All tools
Finance

Landlord ROI Calculator

Cash-on-cash return on a rental property — your actual cash invested vs. cash flow.

🔒 Runs entirely in your browser — nothing here is ever uploaded

Last reviewed 2026-09-01

About the Landlord ROI Calculator

Calculates cash-on-cash return — annual pre-tax cash flow divided by the actual cash you invested (down payment, closing costs, and initial repairs, not the full property price) — the metric that most directly answers how hard your actual money is working.

100% Free Runs in Your Browser No Sign-Up Required
How to use it
  1. Enter your down payment, closing costs, and any initial repair/setup costs.
  2. Enter monthly rent, monthly operating expenses, and your monthly mortgage payment.
  3. Read your cash-on-cash return and cash flow.
Formula
Total cash invested = down payment + closing costs + initial repairs. Monthly cash flow = rent − operating expenses − mortgage payment. Cash-on-cash return = (monthly cash flow × 12) ÷ total cash invested × 100.
Worked example

$70,000 down payment, $8,000 closing costs, $5,000 repairs ($83,000 total cash invested); $2,200 rent, $550 monthly expenses, $1,450 monthly mortgage: $200/month cash flow, a 2.89% cash-on-cash return.

Illustrative cash-on-cash return ranges (vary by market and risk tolerance)
Illustrative cash-on-cash return ranges (vary by market and risk tolerance)
RangeCommon association
Below 8%Below the typical target range for many investors
8-12%General industry consensus for a solid return
12%+Exceptional, often in higher-growth or higher-risk markets
Interpreting your result

Cash-on-cash return divides by your actual cash invested, not the full purchase price, since the rest is financed — distinguishing it from cap rate. A commonly cited target is roughly 8-12%. This is a pre-tax estimate that doesn't account for appreciation or principal paydown.

Recommendations
  • A low or even negative monthly cash flow doesn't necessarily mean a bad investment — principal paydown and appreciation build wealth too.
  • Cash-on-cash return is sensitive to your down payment size in both directions.
  • Compare cash-on-cash return against your other investment alternatives, factoring in real estate's illiquidity.
Frequently asked questions
Because most buyers finance most of the purchase — it measures the return on your actual out-of-pocket money.
See the full methodology and sources for every finance calculator
Disclaimer

Illustrative estimate only, not financial or tax advice. Verify figures with a licensed adviser or your local tax authority.