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 $250,000 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% | $1,400 | $2,245 | Weak |
| 3% | $2,100 | $2,320 | Weak |
| 4% | $2,800 | $2,395 | Fair |
| 5% | $3,500 | $2,470 | Fair |
| 6% | $4,200 | $2,545 | Fair |
| 7% | $4,900 | $2,620 | Fair |
| 8% | $5,600 | $2,695 | Good |
| 9% | $6,300 | $2,770 | Good |
| 10% | $7,000 | $2,845 | Good |
| 12% | $8,400 | $2,995 | Excellent |
| 15% | $10,500 | $3,220 | Excellent |
| 20% | $14,000 | $3,595 | 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.