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Finance

Cash-on-Cash Return Calculator

Compare annual pre-tax cash flow with cash invested.

Amounts stay on this deviceMethod and assumptions below
Financial workspace
Financial workspace

Check the assumptions, then compare another scenario.

See the method

Build a scenario

Runs on your device

Your financial summary

Your result

Let’s calculate.

Use the Calculate button to see your result.

Estimate based on your inputs and the stated assumptions.

How to use this tool

  1. Enter annual pre-tax cash flow using your chosen cash-flow definition.
  2. Enter actual cash invested using the same currency. Include acquisition costs if they are part of your investment basis.
  3. Calculate the annual percentage and check which cash costs were included before comparing projects.

Input reference and sample values

Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.

InputFormat and unitsSample
Annual pre-tax cash flowNumeric value. Unit: money.6000
Cash investedNumeric value. Unit: money. Must be greater than zero.60000

Result for these sample inputs

10 %

Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.

The method, explained

Cash-on-cash return = annual cash flow/cash invested × 100%.

A WORKED EXAMPLE

Annual pre-tax cash flow of 6,000 divided by cash invested of 60,000 gives 10%. If cash flow is −3,000 on the same cash basis, the return is −5%.

Understanding your result

The denominator is cash invested, not the property’s market value. This is why cash-on-cash return differs from cap rate. It is a single-period cash measure and does not include appreciation, sale proceeds or a multi-year internal rate of return unless those are separately modeled.

What to keep in mind

Cash invested must be positive. Supply annual cash flow after the costs you intend to include, such as debt service; the tool does not infer those costs. Use consistent periods and definitions. This is scenario arithmetic, not an investment recommendation.

Common questions

Does a mortgage affect this ratio?

It can change both the cash initially invested and the annual cash flow after debt service. Enter those quantities consistently; the calculator does not build a loan schedule.

Does this include property appreciation?

No. Appreciation is not annual cash flow. A total-return analysis needs additional assumptions about value, costs and the timing of sale.

Methodology maintained by ClarityKit. How these tools are built and checked.