Cash on Cash Return Calculator

Calculate Your Real Estate Investment Returns

Cash on Cash Return

12.00%
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Understanding Cash on Cash Return

What is Cash on Cash Return?

Cash on Cash (CoC) Return is a key metric used by real estate investors to evaluate the performance of their investment properties. It measures the ratio between the annual cash flow generated by the property and the total cash invested, expressed as a percentage.

How to Calculate Cash on Cash Return

The formula is straightforward:

Cash on Cash Return = (Annual Cash Flow ÷ Total Cash Investment) × 100

What Makes a Good Cash on Cash Return?

While the definition of a "good" return varies by market and investor preferences, here's a general guideline:

  • â–ª 8-12%: Good
  • â–ª 12-15%: Very Good
  • â–ª 15%+: Excellent

Factors Affecting Cash on Cash Return

Several factors can impact your CoC return:

  • â–ª Rental income
  • â–ª Operating expenses
  • â–ª Mortgage payments
  • â–ª Down payment amount