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cash-on-cash return calculator

Cash on Cash Return Calculator

Measure the current annual cash yield on the equity cash committed to an investment.

FormulaCash-on-cash return = Annual pre-tax cash flow ÷ Total cash invested
Calculator

Cash on Cash Return Calculator

Enter your numbers and the result updates straight away.

Results

Outputs

Cash-on-cash return
Waiting for valid inputs
Simple cash payback
Waiting for valid inputs

Planning estimate only. Verify assumptions before making a financial decision.

Worked example

$24,000 of annual pre-tax cash flow on $200,000 invested produces a 12% cash-on-cash return.

Methodology

How this calculation works

The ratio divides one year of pre-tax cash flow by total initial cash invested. It is a period yield and does not compound.

How to interpret the result

Use consistent cash-flow definitions. The ratio excludes appreciation, sale proceeds, tax effects, and timing differences, so pair it with IRR or NPV for a complete view.

Limitations

Results are educational planning estimates. They do not include every tax, legal, accounting, financing, or business-specific consideration and are not professional advice.

Sources and further reading

Browse more Valuation and Return Calculators.

Formula and example
Cash-on-cash return = Annual pre-tax cash flow ÷ Total cash invested

$24,000 of annual pre-tax cash flow on $200,000 invested produces a 12% cash-on-cash return.

Common use cases
  • Compare leveraged property or business investments.
  • Measure current equity yield.
  • Test financing structures.
Cash on Cash Return Calculator FAQ

How is cash-on-cash return calculated?

The ratio divides one year of pre-tax cash flow by total initial cash invested. It is a period yield and does not compound.

What should I check before using the result?

Use consistent cash-flow definitions. The ratio excludes appreciation, sale proceeds, tax effects, and timing differences, so pair it with IRR or NPV for a complete view.

Does this calculator provide financial advice?

No. It applies the stated formula to your inputs for educational planning. Validate definitions, timing, accounting treatment, and assumptions before acting.