Explain
Close

Shows the ratio (as a percentage) between the property's cash flow in a particular year (usually before taxes) and the amount of initial cash investment.

"Initial cash investment includes down payment, loan points and closing costs (escrow, title, appraisal fees)."

Example
Close

You purchased a duplex with an initial cash investment of $100,000 and are projecting an annual gross rental income of $50,000, 4% vacancy, 28% operating expenses, and a debt service of $25,000. You want to know your cash on cash return.

"Operating expenses are computed as a percent of gross operating income for entries 1 - 100."

"Debt service is the annual principal and interest loan payment."

"For best results, use annual amounts for all entries."

Cash on Cash

Solves the cash-on-cash rate of return.

*Required