Enter the total cash flow in the period ($) and the total cost of investment ($) into the Return on Cash Flow Calculator. The calculator will evaluate and display the Return on Cash Flow.
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Return on Cash Flow Formula
The following formula is used to calculate the Return on Cash Flow.
ROCF = CF / I * 100
- Where ROCF is the Return on Cash Flow (%)
- CF is the total cash flow in the period ($)
- I is the total cost of investment ($)
To calculate the return on cash flow, divide the cash flow by the investment amount, then multiply by 100.
How to Calculate Return on Cash Flow?
The following example problems outline how to calculate Return on Cash Flow.
Example Problem #1:
- First, determine the total cash flow in the period ($).
- The total cash flow in the period ($) is given as: 400.
- Next, determine the total cost of investment ($).
- The total cost of investment ($) is provided as: 1500.
- Finally, calculate the Return on Cash Flow using the equation above:
ROCF = CF / I * 100
The values given above are inserted into the equation below and the solution is calculated:
ROCF = 400 / 1500 * 100 = 26.667 (%)
Example Problem #2:
For this problem, the variables needed are provided below:
total cashflow in the period ($) = 600
total cost of investment ($) = 2100
This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.
ROCF = CF / I * 100 = ?
