How to calculate Cash-on-cash return
The Cash-on-cash return formula, with plain worked examples you can check yourself.
Cash-on-cash return = CF ÷ I × 100
The result is a percentage (%).
Worked examples
CF = 2400 · I = 40000Cash-on-cash return = 6%
CF = 1200 · I = 20000Cash-on-cash return = 6%
CF = 2000 · I = 40000Cash-on-cash return = 5%
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Multiply by 100 to show the answer as a percentage.
- Compare the answer with last period or with a competitor to see if it is good or bad.
This formula belongs to Investing & Returns.
Related terms
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