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.
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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:
- First, determine the annual cash flow ($).
- The annual cash flow ($) is given as: 8,000.
- Next, determine the total cash invested ($).
- The total cash invested ($) is provided as: 80,000.
- 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 = ?
