The annual cash flow earned on the actual cash invested in a property.
Cash-on-cash return measures the percentage yield on the actual cash you put into a real estate deal — typically your down payment, closing costs, and any upfront repairs. Unlike cap rate, it accounts for mortgage financing, making it the most useful metric for evaluating leveraged investments. This is the metric most active investors use to compare deals.
Cash-on-Cash Return = (Annual Cash Flow ÷ Total Cash Invested) × 100Cash-on-cash return equals annual cash flow divided by total cash invested.
You purchase a $300,000 property with $60,000 down and $5,000 in closing costs ($65,000 cash invested). After all expenses including mortgage, the property generates $5,200 in annual cash flow. Your cash-on-cash return is ($5,200 ÷ $65,000) × 100 = 8%.
Richify automatically calculates cash-on-cash return and other key real estate metrics for every property in your portfolio. Instead of plugging numbers into spreadsheets, you get instant analysis with built-in AI-powered insights to help you spot trends and opportunities across your holdings.
A property's annual net operating income as a percentage of its purchase price.
The net cash a rental property generates after all expenses including mortgage payments.
The annualized return rate that accounts for all cash flows over a property's holding period.
The growth in your ownership stake in a property as you pay down the mortgage.
Stop calculating real estate metrics by hand. Richify computes cash-on-cash return and 10+ other key metrics for every property in your portfolio.
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