Cash-on-Cash Return Calculator

Cash-on-cash return, also called return on cash deployed, is your annual net cashflow divided by the total cash you put into the deal - deposit, stamp duty, buying costs and refurbishment. It shows how hard your actual cash is working, which yield alone does not because yield ignores how the purchase is financed.

Many leveraged UK landlords aim for something in the region of 8 to 15% cash-on-cash, though it varies a lot by area, strategy and interest rates. Higher rates have squeezed cashflow, so a positive, resilient figure matters more than hitting a specific headline number.

Gross yield compares rent to price and ignores finance. Cash-on-cash compares the after-finance cash profit to the cash you actually invested, so leverage changes it. It is a form of ROI focused on the first year's cashflow return; it does not include capital growth or mortgage paydown.

Yes. Any money you have to find to get the property tenanted - deposit, stamp duty, legal and broker fees, survey and refurbishment - is cash deployed. Leaving refurb out flatters the return. If you later refinance and pull money back out, look at the BRRR tool, which measures the return on the cash left in.