Cash-on-Cash Return Calculator

Q: What is Cash-on-Cash return?

Cash-on-Cash return is the ratio of annual pre-tax cash flow to the total amount of cash invested. It measures the cash return on the actual money out of pocket.

Calculate the pre-tax cash flow return on your total cash invested in a property.

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Annual Pre-Tax Cash Flow ($)

Total Cash Invested ($) Down payment + Closing + Repairs.

What is Cash-on-Cash Return?

While Cap Rate looks at the property's performance regardless of how it was financed, Cash-on-Cash (CoC) Return measures the specific return on the actual cash you deployed.

Annual Cash Flow: The net profit left over after paying all expenses and the mortgage debt service.
Total Cash Invested: The sum of your down payment, closing costs, and initial renovation expenses.

Formula: CoC Return = (Annual Cash Flow / Total Cash Invested) × 100

This metric is essential for comparing real estate investments to other cash-yielding assets like stocks or bonds.