Enter the annual cash flow ($) and the total cash invested ($) into the Return on Cash Calculator. The calculator will evaluate and display the Return on Cash. 

Return on Cash Formula

The following formula is used to calculate the Return on Cash. 

ROC = ACF / CI * 100

  • Where ROC is the Return on Cash (%)
  • ACF is the annual cash flow ($) 
  • CI is the total cash invested ($) 

How to Calculate Return on Cash?

The following example problems outline how to calculate Return on Cash.

Example Problem #1:

  1. First, determine the annual cash flow ($). 
    • The annual cash flow ($) is given as:  8,000.
  2. Next, determine the total cash invested ($). 
    • The total cash invested ($) is provided as: 80,000.
  3. Finally, calculate the Return on Cash using the equation above: 

ROC = ACF / CI * 100

The values given above are inserted into the equation below and the solution is calculated:

ROC = 8,000 / 80,000 * 100 = 10.00 (%)

Example Problem #2: 

For this problem, the variables needed are provided below:

annual cash flow ($) = 7,000

total cash invested ($) = 150,000

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer. 

ROC = ACF / CI * 100 = ?