Cash-on-Cash Return Calculator
Year-one pre-tax cash return on the actual cash you've committed to the deal.
Rates, water, insurance, repairs, strata.
Year-one cash-on-cash return
-11.49%
Cash invested: $193,200
About this calculator
This cash-on-cash return calculator works out the year-one pre-tax cash return on an Australian investment property — the percentage that the property pays back on the actual cash you tipped into the deal. It is the metric seasoned investors use to compare opportunities on a like-for-like basis once gearing is taken into account.
How cash-on-cash is calculated
Cash-on-cash return = year-one net cash flow ÷ total cash invested × 100. Net cash flow is annual rent minus vacancy, operating expenses (council rates, water, insurance, strata, management, maintenance) and loan interest. Total cash invested is your deposit plus stamp duty, legal and conveyancing fees, inspection costs and any up-front capital works.
Assumptions and limitations
- Year one only — rent growth, expense inflation and rate movements are not modelled.
- Interest-only repayments are assumed for the cash-flow line (P&I principal is treated as forced saving, not expense).
- Pre-tax — no depreciation, negative gearing or land tax.
- Assumes the property is tenanted from settlement, less the vacancy allowance.
When to use it
Use this calculator when comparing deals at different loan-to-value ratios, deciding how much deposit to put in, or assessing whether a property will be cash-flow positive, neutral or negatively geared. For the multi-year view including a terminal sale, use our IRR & Equity Multiple calculator.
Frequently asked questions
- What is cash-on-cash return?
- Cash-on-cash return (CoC) is the year-one pre-tax cash flow from a property divided by the cash you actually put into the deal — deposit, stamp duty, legals and any upfront improvement costs. It tells you what return you are earning on the money that is genuinely tied up, not on the full purchase price.
- How is cash-on-cash different from rental yield?
- Rental yield measures the property's income relative to the purchase price, regardless of how it is funded. Cash-on-cash measures the cash return on your equity, so it changes depending on your loan-to-value ratio. A property with a 4% net yield can deliver a 7%+ cash-on-cash return at 80% LVR.
- What is a good cash-on-cash return on an Australian property?
- In a typical capital-city market, geared residential investments often deliver a slightly negative cash-on-cash return in year one (negative gearing), with the investor relying on capital growth and rental uplift over time. Positive cash-on-cash above 4–5% is more common in regional markets, higher-yield units, or commercial property.
- Does this include tax or depreciation?
- No — it is a pre-tax cash measure. After-tax cash flow can be materially better than the headline cash-on-cash thanks to depreciation deductions on the building and plant & equipment, especially for new builds. Speak to a quantity surveyor for a tax depreciation schedule.
- Is cash-on-cash the same as IRR?
- No. Cash-on-cash is a year-one snapshot. IRR (internal rate of return) accounts for cash flows across the full hold and the eventual sale, weighted by when each dollar arrives. Use IRR when you care about the full investment lifecycle.
Estimates are indicative only and intended as a starting point. Actual figures depend on lender policy, market conditions, professional fees, taxes and other costs. Always confirm with a licensed broker, accountant, valuer or solicitor before acting.