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How to use
- Enter Annual pre-tax cash flow.
- Enter Total cash invested.
- Calculate, then verify input definitions before comparing properties or periods.
How it is calculated
Cash-on-cash return = annual pre-tax cash flow ÷ cash invested × 100
Example
Annual cash flow of 30,000 on 300,000 cash invested gives a 10% cash-on-cash return.
Important notes
Include all actual upfront cash such as down payment, closing costs and initial improvements when they are part of the investment.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Cash-on-cash return | 30000 ÷ 300000 × 100 | 10 % |
| 15,000 cash-flow scenario | 15000 ÷ 300000 × 100 | 5 % |
Frequently asked questions
Is this the same as real-estate ROI?
No. Cash-on-cash focuses on annual cash flow versus cash invested; ROI may include sale proceeds and capital gains.
Should inputs cover the same period?
Yes. When comparing income, expense, balance or price figures, keep the period and definitions consistent.
Is the result a final property valuation?
No. The calculator gives a numerical relationship only; real decisions also depend on location, market conditions, taxes, financing and risk.