Enter the total pre-tax cash flow generated by your investment and the actual cash invested into the calculator. The calculator will display your cash on cash return ratio.

- Cash Coverage Ratio Calculator
- ROI Calculator
- Internal Rate of Return Calculator
- Cash Conversion Cycle Calculator

## Cash on Cash Return Formula

The following formula is used to calculate the cash on cash return of an investment.

COCR = CF / I

- Where COCR is the cash on cash return ratio
- CF is the annual, pre-tax cash flow
- I is the total cash invested

## Cash On Cash Return Definition

A cash on cash return is defined as the ratio of pre-tax cash flow to the total cash invested in a given asset.

## Cash on Cash Return Example

How to calculate cash on cash return

**First, determine the total amount invested**This is the total cash invested in the asset.

**Next, determine the annual pre-tax cash flow**This is the total income/cash flow your new investment is generating on a yearly basis.

**Finally, calculate the COCR**Calculate the cash on cash return of your investment using the equation above and the information from steps 1 and 2.

## FAQ

**What is cash on cash return?**

Cash on cash return is a measure of the annual cash earned from an investment with respect to the total amount of money invested.

**What is a good cash on cash return?**

In general, a 20% yearly cash on cash return is a solid cash on cash return. In short, this means the investment will pay for itself in 5 years. The greater the return, the quicker the payoff.