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01Real Estate toolCalculated result
Cash-on-Cash Return
Annual return on the actual cash you put in.
100% FreeRuns instantlyNo watermark
- 1Enter detailsAdd the numbers for your scenario.
- 2CalculateVootkit updates the result instantly.
- 3ReviewCheck totals, notes and breakdowns.
Private by designProcessed on your device where possible.
Works on any deviceDesktop, tablet and mobile browsers.
No installationOpen the page and start working.
Always free coreUse the free plan for everyday tasks.
How to use Cash-on-Cash Return
Vootkit updates the result instantly.
02Check totals, notes and breakdowns.
03Copy the answer into your workflow.
04Your files stay private
Your work is processed locally in your browser where possible and is never added to a Vootkit upload library.
Learn more about privacyCash-on-cash answers the question an investor actually cares about: what is my own money earning? Unlike cap rate, it includes the mortgage — because leverage is exactly what changes the answer.
What Cash-on-Cash Return does
Divides annual pre-tax cash flow by the cash you actually put in — deposit, closing costs and any initial works — rather than by the property price.
Defaults to a 300,000 purchase with 60,000 down. Because the denominator is your cash rather than the price, borrowing more can raise this figure while raising risk just as fast.
What goes in
| Formula | Annual pre-tax cash flow ÷ total cash invested |
|---|---|
| Cash invested | Deposit + closing costs + initial works |
| <strong>Includes</strong> | <strong>Mortgage payments — unlike cap rate</strong> |
| Default purchase / down | 300,000 / 60,000 |
| Leverage | Raises the figure and the risk together |
| Pre-tax | Your tax position is not modelled |
| Excludes | Capital growth and principal paydown |
| Is this advice? | <strong>No</strong> |
Detailed steps
- Enter the purchase price and your actual cash in — including closing costs.
- Enter rent and all costs including the mortgage payment.
- Read the return on your own money, and note it is before tax.
Worth knowing
Include closing costs in the cash invested, not just the deposit. Legal fees, taxes, surveys and initial repairs routinely add several percent of the purchase price, and leaving them out inflates the return on a figure that was never the real outlay. It is the commonest way a first model comes out too optimistic.
Frequently Asked Questions
How is this different from cap rate?
Cap rate measures the property and ignores financing. Cash-on-cash measures your money and includes the mortgage. The same building gives different cash-on-cash figures to a cash buyer and a leveraged one, which is the point.
Does more leverage mean better returns?
It can raise the percentage, because the denominator shrinks. It also raises risk in the same motion — a vacancy or a rate rise is far more dangerous when the mortgage is large. A high figure achieved through heavy borrowing is not the same as a high figure achieved through a good purchase.
What is missing?
Capital growth, mortgage principal paydown and your tax position. It measures cash in the year, which is why an investor might accept a low figure on a property expected to appreciate.
What is a good number?
That depends on your market, your alternatives and your risk tolerance, none of which a calculator can see. Compare against what your money could do elsewhere, and take advice before committing.
Is Cash-on-Cash Return free?
Yes. The Vootkit free plan includes 5 tool runs a day. Upgrade to Vootkit Pro for unlimited daily use, an ad-free workspace and saved workflows.
Are my files uploaded?
No. Cash-on-Cash Return runs entirely in your browser — your file is processed on your own device and never sent to a server. There is nothing for us to store or delete.
Do I need to install anything?
No. Cash-on-Cash Return works in any modern browser on desktop, tablet or phone. Open the page and start.
How often can I use it? Is there a daily limit?
On the free plan you get 5 tool runs a day. When you reach the limit you'll see a prompt to upgrade, and it resets the next day. Vootkit Pro removes the cap entirely for unlimited daily use.
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This tool processes everything locally in your browser. You can disconnect from the internet after the page loads and it will still work.