Cash-on-Cash Return
Annual pre-tax cash flow / total cash invested
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Cash-on-Cash Return is built for annual pre-tax cash flow / total cash invested — fast, free, and private. Enter Annual Pre-Tax Cash Flow ($) and Total Cash Invested ($) in any order — Cash-on-Cash Return recalculates on every edit. Cash-on-Cash Return displays each intermediate figure as well. Cash-on-Cash Return works for one check or many. Cash-on-Cash Return runs in your browser. Finance data stays in the tab. Cash-on-Cash Return is part of the Finance collection on CalcProMaster, alongside cash on cash return calculator real estate investment, free online cash-on-cash return calculator and more. Cash-on-Cash Return is great for comparing scenarios. Change one value and watch. Cash-on-Cash Return is free, instant and local.
What is a cash-on-cash return?
Cash-on-cash return divides the annual pre-tax cash flow by the cash you actually put into the deal, so a leveraged property is judged on the equity rather than the price. Enter both figures and the page reports the return alongside the assumptions behind the cash flow.
- Inputs: Annual Pre-Tax Cash Flow and Total Cash Invested.
- Output: the cash-on-cash, together with the chain that produced it.
- Method: the published Finance relationship between the Annual Pre-Tax Cash Flow and Total Cash Invested and the cash-on-cash.
Quick answer
$12,000 of annual cash flow on $150,000 of invested cash is an 8% cash-on-cash return.
How does the Cash-on-Cash Return work?
Cash-on-Cash Return computes the cash-on-cash directly from your inputs — the Annual Pre-Tax Cash Flow and Total Cash Invested feed the formula. Your numbers stay in the tab and the cash-on-cash recalculates the moment a field changes.
How it works
What separates Cash-on-Cash Return from a bare number is the trail behind it: Annual Pre-Tax Cash Flow and Total Cash Invested go in, the figure comes out, and the route between the two stays on screen.
Using the Cash-on-Cash Return
- Annual Pre-Tax Cash Flow — applied once in the cash-on-cash return calculation; changing it later moves the result.
- Total Cash Invested — taken at face value by cash-on-cash return, so a loose estimate shows up in the cash-on-cash.
- Read the output that Cash-on-Cash Return reports: it appears immediately, with the step-by-step working underneath so you can verify every number.
- Compare scenarios in Cash-on-Cash Return: rerun with different values, or use the batch mode, to line up several outcomes side by side.
The formula behind the result
Where the Finance method allows more than one common convention, Cash-on-Cash Return uses the one named on the label and computes the figure with it from the first term to the last.
Worked example: with annual pre-tax cash flow of 12,000, total cash invested of 80,000, this cash-on-cash return calculation returns Cash-on-Cash: 15.00%. The same run reports $12,000 return on $80,000 invested.
The steps it follows:
- Formula: CoC = Annual Cash Flow / Total Cash Invested × 100
- $12,000 / $80,000
- = 0.1500
- Cash-on-Cash = 15.00%
Understanding the result
Decimal places on cash-on-cash return beyond the precision of your own Annual Pre-Tax Cash Flow and Total Cash Invested are display, not information.
Where it helps
Reach for the cash-on-cash return calculator when you need building a number into a budget, trying a rounded and an exact figure, and spot-checking a quoted figure without a spreadsheet open beside you.
Common mistakes
Quoting the result without the Annual Pre-Tax Cash Flow and Total Cash Invested that produced it is the error that survives longest, because nobody downstream can check it.
Tip: Cash-on-Cash Return returns Cash-on-Cash: 15.00% at its defaults; double the Annual Pre-Tax Cash Flow ($) and it returns Cash-on-Cash: 30.00%.
Assumptions and limitations
The cash-on-cash Cash-on-Cash Return reports is only as complete as the inputs: anything the page does not ask for sits outside the calculation.
Why use this calculator
Because the steps stay on screen, Cash-on-Cash Return doubles as a worked example for anyone learning how the cash-on-cash is derived.
Frequently Asked Questions
Which figure does cash-on-cash return produce?
Open Cash-on-Cash Return, type the Annual Pre-Tax Cash Flow and Total Cash Invested you already know, and the output follows in the same breath as the arithmetic that produced it. Because nothing is stored server-side, there is no history to clear and no account to close after using Cash-on-Cash Return.
What calculation does the page perform?
The first steps are formula: coc = annual cash flow / total cash invested × 100, then $12,000 / $80,000. Each term in Cash-on-Cash Return can be traced to a line of the Finance definition; nothing is added between the Annual Pre-Tax Cash Flow and Total Cash Invested and the result.
Which fields does the Cash-on-Cash Return need?
Cash-on-Cash Return asks for Annual Pre-Tax Cash Flow and Total Cash Invested and nothing more.
If the Annual Pre-Tax Cash Flow ($) doubles, what follows?
At the defaults Cash-on-Cash Return returns Cash-on-Cash: 15.00%; doubling Annual Pre-Tax Cash Flow ($) to 24,000 moves it to Cash-on-Cash: 30.00%.
How should the the Cash-on-Cash Return result be read?
The main number the cash-on-cash return returns is the cash-on-cash for your exact inputs. Inputs outside a reasonable range may produce a figure from Cash-on-Cash Return that is mathematically correct but practically implausible; the steps panel helps you spot that quickly.
Where does the Cash-on-Cash Return fit in day-to-day work?
Where Cash-on-Cash Return earns its keep: building a number into a budget, trying a rounded and an exact figure, and spot-checking a quoted figure, and the smaller questions that sit around them. Open Cash-on-Cash Return before the meeting rather than during it — the cash-on-cash for three variants takes less time than finding the right tab.
Can I use this page for "real estate investment calculator"?
Cash-on-Cash Return handles that: set the Annual Pre-Tax Cash Flow, Total Cash Invested and the result updates instantly, with the working shown.
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