Cash-on-cash return: how much your invested cash earns each year after mortgage interest and running costs.
On $80,500 of cash invested, your annual cashflow is $3,488.
Results are estimates for informational purposes only. Not financial advice.
Buy-to-let return on investment (cash-on-cash return) is the annual cash profit from a rental property as a percentage of the cash you actually put in — your deposit, stamp duty, legal fees, and refurb costs. Unlike yield, ROI accounts for leverage: a mortgaged property with 25% down can generate a much higher ROI than the gross yield suggests, because you're earning returns on the bank's money too.
Enter the purchase price, deposit and fees, mortgage details, monthly rent, and operating costs. The calculator returns annual cash flow and your cash-on-cash ROI. ROI above 8–10% is generally considered strong for buy-to-let; below 4–5% rarely justifies the management hassle and risk versus passive index investing.
Cash-on-cash ROI measures the income side, but most buy-to-let returns come from a combination of rent and capital appreciation. A property yielding only 4% net might still deliver a 12%+ total return once 4–5% annual capital growth is added in — and that growth is on the full property value, not just your deposit. Conversely, a high-yielding property in a flat market can underperform a lower-yielding property in an appreciating one. Always model both income ROI and projected capital growth before committing.
Results are estimates for informational purposes only.