Cash on Cash Return, 2% to 20%, in Real Numbers
A percentage is abstract until you see the rent behind it. This table shows what a $500,000 rental has to bring in to hit each return level with 25% down at 7.25%. Pick a level for the full breakdown.
| Return | Annual cash flow | Rent needed | Rating |
|---|---|---|---|
| 2% | $2,800 | $4,495 | Weak |
| 3% | $4,200 | $4,640 | Weak |
| 4% | $5,600 | $4,790 | Fair |
| 5% | $7,000 | $4,940 | Fair |
| 6% | $8,400 | $5,090 | Fair |
| 7% | $9,800 | $5,240 | Fair |
| 8% | $11,200 | $5,390 | Good |
| 9% | $12,600 | $5,540 | Good |
| 10% | $14,000 | $5,690 | Good |
| 12% | $16,800 | $5,990 | Excellent |
| 15% | $21,000 | $6,440 | Excellent |
| 20% | $28,000 | $7,190 | Excellent |
Run your own deal in the cash on cash return calculator, or see how the return moves with price on the purchase price pages.