[ free tool · cash-on-cash ]
cash-on-cash return.
annual cash flow ÷ total cash invested. the most important metric for evaluating rental property returns — what you actually earn on the cash you put down.
cash invested
income & financing
monthly operating expenses
cash-on-cash
2.1%
weak
total cash invested
$36,000
down payment + closing + rehab
monthly cash flow
$63
after all expenses + mortgage
annual cash flow
$759
cash flow × 12
cap rate
6.9%
NOI / purchase price (unleveraged)
P&I payment
$682
30-year fixed mortgage
total monthly expenses
$1,237
all costs including mortgage
below 6%
weak return.
consider whether appreciation potential or other factors justify the deal. otherwise, walk.
6 – 10%
acceptable.
good for appreciating markets or safer, stabilized assets in major metros.
10%+
strong.
typical in cash flow markets like Cleveland, Memphis, Detroit, Indianapolis.
find high CoC
deals.
Verleon AI calculates cash-on-cash on every active listing. filter by your minimum CoC and see only what qualifies.