Cash on Cash Return Calculator
Calculate Cash on Cash (CoC) return percentage on rental real estate investments by comparing annual pre tax cash flow to total out of pocket cash…
Calculation Formula
How to Use the Cash on Cash Return Calculator
- 1 Enter your Annual Pre Tax Net Cash Flow ($ after mortgage debt service, taxes, insurance, and maintenance).
- 2 Enter upfront acquisition costs: Down Payment ($), Closing Costs ($), and Initial Renovation / Rehab Costs ($).
- 3 Review your Total Cash Invested ($) and resulting Cash on Cash Return Percentage (%).
- 4 Inspect the investment performance rating badge (e.g., "Strong Yield (8 to 12%)").
Methodology & Algorithmic Standards
Formula: $\text{CoC Return} = \left(\frac{\text{Annual Pre Tax Cash Flow}}{\text{Total Cash Invested}}\right) \times 100$, where Total Cash Invested = Down Payment + Closing Costs + Initial Repairs.
Frequently Asked Questions
How does Cash on Cash Return differ from Cap Rate? ▼
Cap Rate evaluates the property's unleveraged yield assuming an all-cash purchase. Cash on Cash Return measures the actual cash yield specifically on the money you personally invested out of pocket, factoring in mortgage financing.
What is considered a "good" Cash on Cash return? ▼
In modern real estate investing, an 8% to 12% CoC return is generally considered strong for residential rental properties. Returns above 12% are exceptional, while returns below 6% may indicate thin cash flow.
Can I export this investment analysis to Olevx Notepad? ▼
Yes! Click "Open in Notepad" to create a structured real estate deal memo.
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