Cash on Cash Return

Definition

A rate of return ratio that calculates the total cash earned on the total cash invested in a property.

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Investment Property ROI

Formula: CoC = Annual Pre-Tax Cash Flow / Total Cash Invested.

Unlike Cap Rate, this metric does account for debt service, making it a better measure of actual cash pocketed by the investor.

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This tool is for illustrative purposes only and does not constitute professional financial, tax, or legal advice. Calculations are estimates and may not reflect real-world variables or local regulations. Always consult with a qualified professional before making financial decisions.