Mortgage calculator

Cash-on-Cash Return Calculator Canada

Cash-on-cash return measures annual pre-tax cash flow against the cash you put into a rental property. It is useful for comparing financed deals because it includes the mortgage payment and down payment.

Verified: 2026-07-29 · Author: Sunny

Calculate cash-on-cash return View methodology

Direct answer

Cash-on-cash return is annual pre-tax cash flow divided by cash invested. In a $600,000 purchase with 20% down, $2,800 rent, $550 monthly expenses, 5% vacancy, and a 5% mortgage, annual cash flow is about -$8,184, so cash-on-cash return is about -6.8% before tax.

Calculator

Enter your own numbers here, then use the examples and notes below to check the result.

Worked Canadian examples

Scenario	Result	Interpretation
$800k property, $3,000 rent	-10.3% cash-on-cash	About -$16,464 annual cash flow on a $160,000 down payment.
$600k property, $2,800 rent	-6.8% cash-on-cash	About -$8,184 annual cash flow on a $120,000 down payment.
$400k property, $2,200 rent	-2.6% cash-on-cash	About -$2,052 annual cash flow on an $80,000 down payment.

Quick scenario checks

$800k property

-10.3% cash-on-cash

About -$16,464 annual cash flow on a $160,000 down payment.

$600k property

-6.8% cash-on-cash

About -$8,184 annual cash flow on a $120,000 down payment.

$400k property

-2.6% cash-on-cash

About -$2,052 annual cash flow on an $80,000 down payment.

Cash-on-cash return formula

Cash-on-cash return = annual pre-tax cash flow / cash invested

Cash invested usually includes down payment, closing costs, immediate repairs, and any acquisition costs paid in cash.

Metric comparison

Metric	Formula	Use when
Cash-on-cash return	annual cash flow / cash invested	Compare returns on your actual cash.
Cap rate	NOI / price	Compare properties without financing.
DSCR	NOI / debt service	Check debt-service coverage.

How to use this page

Enter your amount, province, rate, or pay period in the calculator above.
Use the examples above to confirm the calculation type you need.
Adjust the inputs until they match your real scenario.
Use the source link below to verify the public rule behind the estimate.

Methodology notes

The embedded calculator uses down payment as cash invested; add closing costs and repairs manually when analyzing a real property.
Cash flow is pre-tax and excludes principal recapture, appreciation, depreciation, and future capital expenditures.
Canadian mortgage payments use semi-annual compounding, matching the rest of the mortgage toolset.

Common mistakes

Counting principal paydown as cash flow even though it is not spendable cash.
Ignoring land transfer tax, legal fees, inspections, immediate repairs, and vacancy reserves in cash invested.
Comparing leveraged and all-cash deals with the same ROI metric.

Limitations

Cash-on-cash return ignores appreciation, mortgage principal paydown, depreciation, refinancing, and sale costs.
A strong cash-on-cash return can still come with weak DSCR if the deal is highly leveraged.

Related calculators and guides

Rental investor calculator hubStart here to compare every rental metric in the cluster.Cap rate calculatorCompare properties before financing.DSCR calculatorCheck lender-style debt-service coverage.Break-even rent calculatorFind the rent needed to cover payments and operating costs.Rental property ROI calculatorReview cash flow, cap rate, DSCR, and cash-on-cash together.Break-even rent by province reportOriginal province comparison built from the mortgage engine.Canadian rental cash-flow reportCity comparison with derived cap rate, DSCR, and break-even rent.

Questions

Is cash-on-cash return the same as ROI?

It is one type of ROI. It only measures pre-tax cash flow against cash invested, so it excludes appreciation, principal paydown, and eventual sale proceeds.

Should closing costs be included in cash invested?

Yes for a real acquisition. Include land transfer tax, legal fees, inspection, appraisal, repairs, and other cash paid to close or stabilize the property.

Sources and verification

This page uses the shared usecos calculator engine, visible formulas, and the source links below. Verified on 2026-07-29.