Calculating your cash-on-cash return is straightforward once you know the Cash on Cash Return formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Cash on Cash Return Calculator.
What is Cash on Cash Return?
The Cash on Cash Return calculation tells you your cash-on-cash return from a few simple inputs. The figure you are solving for here is the cash-on-cash return, expressed in percent.
The Cash on Cash Return formula
The core formula is:
Cash-on-cash return = Annual pre-tax cash flow ÷ Total cash invested × 100Here is what each input means:
- Annual pre-tax cash flow — a money amount. Example: ₹2,00,000.
- Total cash invested — a money amount. Example: ₹20,00,000.
How to calculate it step by step
- Write down the annual pre-tax cash flow (for example, ₹2,00,000).
- Write down the total cash invested (for example, ₹20,00,000).
- Apply the formula above to get your cash-on-cash return.
- Double-check the result with the Cash on Cash Return Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Annual pre-tax cash flow | ₹2,00,000 |
| Total cash invested | ₹20,00,000 |
| Cash-on-cash return | 10.00% |
With annual pre-tax cash flow of ₹2,00,000 and total cash invested of ₹20,00,000, the cash-on-cash return works out to 10.00%.
Example 2
With annual pre-tax cash flow of ₹4,00,000 and total cash invested of ₹20,00,000, the cash-on-cash return works out to 20.00%.
| Result | Value |
|---|---|
| Cash-on-cash return | 20.00% |
Example 3
With annual pre-tax cash flow of ₹1,00,000 and total cash invested of ₹20,00,000, the cash-on-cash return works out to 5.00%.
| Result | Value |
|---|---|
| Cash-on-cash return | 5.00% |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
- Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).
Prefer not to do the maths by hand? — the Cash on Cash Return Calculator does it instantly, for free, with the formula and a worked example built in.
Related calculators
Continue exploring real estate calculators with these tools: Down Payment Percentage Calculator, Property Management Fee Calculator, Stamp Duty Calculator, Real Estate Commission Calculator, Price Per Acre Calculator.