Cash on Cash Return Calculator

✖Net Operating Income is the total revenue generated from a property minus operating expenses but excluding debt service and income taxes.ⓘ Net Operating Income [NOI]			+10% -10%
✖Total Cash Invested refers to the sum of all funds put into an investment, including initial capital, additional investments, and any related expenses or costs.ⓘ Total Cash Invested [TCI]			+10% -10%

✖Cash on Cash Return is a measure of the annual return on an investment property, calculated as the ratio of the property's net operating income to the initial cash investment.ⓘ Cash on Cash Return [COCR]

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Formula

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Cash on Cash Return

Formula

`"COCR" = ("NOI"/"TCI")*100`

Example

`"119"=("59500"/"50000")*100`

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Cash on Cash Return Solution

STEP 0: Pre-Calculation Summary

Formula Used

Cash on Cash Return = (Net Operating Income/Total Cash Invested)*100
COCR = (NOI/TCI)*100
This formula uses 3 Variables

Variables Used

Cash on Cash Return - Cash on Cash Return is a measure of the annual return on an investment property, calculated as the ratio of the property's net operating income to the initial cash investment.
Net Operating Income - Net Operating Income is the total revenue generated from a property minus operating expenses but excluding debt service and income taxes.
Total Cash Invested - Total Cash Invested refers to the sum of all funds put into an investment, including initial capital, additional investments, and any related expenses or costs.

STEP 1: Convert Input(s) to Base Unit

Net Operating Income: 59500 --> No Conversion Required
Total Cash Invested: 50000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

COCR = (NOI/TCI)*100 --> (59500/50000)*100

Evaluating ... ...

COCR = 119

STEP 3: Convert Result to Output's Unit

119 --> No Conversion Required

FINAL ANSWER

119 <-- Cash on Cash Return

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Aashna

IGNOU (IGNOU), India

Aashna has verified this Calculator and 10+ more calculators!

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Cash on Cash Return Formula

Cash on Cash Return = (Net Operating Income/Total Cash Invested)*100
COCR = (NOI/TCI)*100

What is Cash on Cash Return ?

Cash-on-cash return is a financial metric used to evaluate the profitability of an investment property. It measures the annual return on investment based on the amount of cash invested initially. The formula for cash-on-cash return is the annual pre-tax cash flow divided by the total cash invested. Pre-tax cash flow includes rental income minus operating expenses but excludes mortgage payments, income taxes, and other financing costs. This metric is valuable for real estate investors as it provides a clear picture of how much cash they are earning relative to the amount of cash they have invested in a property. A higher cash-on-cash return indicates a more profitable investment, while a lower ratio suggests a lower return on investment. Investors often use cash-on-cash return to compare different investment opportunities and make informed decisions about where to allocate their capital.

How to Calculate Cash on Cash Return?

Cash on Cash Return calculator uses Cash on Cash Return = (Net Operating Income/Total Cash Invested)*100 to calculate the Cash on Cash Return, The Cash on Cash Return is a measure of the annual return on an investment property, calculated as the ratio of the property's net operating income to the initial cash investment. Cash on Cash Return is denoted by COCR symbol.

How to calculate Cash on Cash Return using this online calculator? To use this online calculator for Cash on Cash Return, enter Net Operating Income (NOI) & Total Cash Invested (TCI) and hit the calculate button. Here is how the Cash on Cash Return calculation can be explained with given input values -> 119 = (59500/50000)*100.

FAQ

What is Cash on Cash Return?

The Cash on Cash Return is a measure of the annual return on an investment property, calculated as the ratio of the property's net operating income to the initial cash investment and is represented as COCR = (NOI/TCI)*100 or Cash on Cash Return = (Net Operating Income/Total Cash Invested)*100. Net Operating Income is the total revenue generated from a property minus operating expenses but excluding debt service and income taxes & Total Cash Invested refers to the sum of all funds put into an investment, including initial capital, additional investments, and any related expenses or costs.

How to calculate Cash on Cash Return?

The Cash on Cash Return is a measure of the annual return on an investment property, calculated as the ratio of the property's net operating income to the initial cash investment is calculated using Cash on Cash Return = (Net Operating Income/Total Cash Invested)*100. To calculate Cash on Cash Return, you need Net Operating Income (NOI) & Total Cash Invested (TCI). With our tool, you need to enter the respective value for Net Operating Income & Total Cash Invested and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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