How do you use the cash-on-cash return calculator?
- Enter the property price, the monthly rent, your down payment, the share of rent you expect to lose to empty months, the yearly costs you pay as owner and the loan rate.
- New flat or resale, loan tenure, one-off costs such as brokerage, and the stamp duty and registration rates are under “Adjust rates, loan and one-off costs”.
- Read the cash-on-cash return and what you keep or top up each month in the first year.
What is cash-on-cash return?
Cash-on-cash return is the cash a rented property puts in your pocket in a year, as a share of the cash you put in to buy it. It answers a simple question: for every rupee of my own money, how much comes back each year from rent? It leaves out price growth and tax, so it shows the income side only.
With a home loan in India, the EMI is often larger than the rent, so the cash-on-cash return is negative: you top up every month and hope that price growth makes up for it. Part of each EMI repays the loan, which the calculator also shows as “counting loan repaid”.
How it is worked out
Down payment + stamp duty + cess + surcharge + registration + other one-off costsRent × 12 × (1 − vacancy) − yearly costsNet operating income − 12 EMIsCash flow ÷ cash put inWorked example: ₹ 1 crore flat, 25% down, ₹ 30,000 rent
You put in ₹ 32,60,000: ₹ 25 lakh down and ₹ 7,60,000 of stamp duty and registration. Rent of ₹ 3,60,000 a year, less 5% vacancy and ₹ 60,000 of costs, leaves ₹ 2,82,000. The ₹ 75 lakh loan at 8.5% costs ₹ 7,81,041 in EMIs, so the year’s cash flow is − ₹ 4,99,041 and the cash-on-cash return is −15.31%. Counting the ₹ 1,49,267 of loan repaid, it is −10.73%.
Worked example: the same flat bought with cash
With no loan you put in ₹ 1,07,60,000 and keep ₹ 2,82,000 a year, a cash-on-cash return of 2.62%. That is close to the net rental yield, because there is no EMI.
Cash-on-cash return by down payment
| Down payment | Cash put in | Cash flow | Cash-on-cash |
|---|---|---|---|
| 25% | ₹ 32,60,000 | − ₹ 4,99,041 | −15.31% |
| 50% | ₹ 57,60,000 | − ₹ 2,38,694 | −4.14% |
| 75% | ₹ 82,60,000 | ₹ 21,653 | 0.26% |
| All cash | ₹ 1,07,60,000 | ₹ 2,82,000 | 2.62% |
What should you keep in mind?
- Rent and vacancy are your assumptions. Check what similar flats nearby actually let for.
- The figure is before tax. Rent is taxable and loan interest can reduce that tax; check with your Chartered Accountant.
- A negative cash flow needs a buffer. Make sure you can pay the EMI through empty months.
Frequently asked questions
Related answers and guides
- Prepay Your Home Loan or Invest the Surplus?
- Home Loan Down Payment: RBI's LTV Limits Explained
- Stamp Duty & Registration Charges Bengaluru 2026
- Bengaluru House Price Trends: RBI & NHB Data
Sources
- Karnataka Stamp Act, 1957 and Revenue Department notification RD/46/MNMU/2025 (registration fee 2% from 31 August 2025). Rates verified 18 Oct 2026.
- RBI loan-to-value limits for individual housing loans. Standard reducing-balance EMI. Rent, vacancy and costs are your inputs.
Indicative only and before tax. Verify the tax position with your Chartered Accountant before acting, and confirm stamp duty and registration on Kaveri Online before registering.
Buying a home in Bengaluru? Talk to an acre&key advisor.