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Cash on Cash Return Calculator
Measure the current annual cash yield on the equity cash committed to an investment.
Cash on Cash Return Calculator
Enter your numbers and the result updates straight away.
Outputs
Planning estimate only. Verify assumptions before making a financial decision.
$24,000 of annual pre-tax cash flow on $200,000 invested produces a 12% cash-on-cash return.
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
Formula and example
$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.