This calculator helps real estate investors evaluate the cash on cash return on their investments. It's designed for anyone looking to assess the profitability of their property ventures.
All calculations are based on standard real estate investment formulas and data provided by authoritative sources such as HUD.gov. Visit HUD.gov for more information.
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
Cash on Cash Return: \( \text{CoC Return} = \left( \frac{\text{Annual Cash Flow}}{\text{Total Cash Invested}} \right) \times 100 \)
Let's say you invested $50,000 in a property and receive an annual cash flow of $5,000. Your cash on cash return would be \( \left( \frac{5000}{50000} \right) \times 100 = 10\% \).
Cash on cash return is a rate of return often used in real estate transactions that calculates the cash income earned on the cash invested in a property.
ROI measures the total return on investment, including appreciation, while cash on cash return focuses only on the cash income relative to the cash investment.
It helps investors understand the profitability of their property investments in terms of immediate cash flow.
No, it does not consider loan payments or interest, focusing purely on cash flow and cash invested.
This can vary depending on the market, but generally, a return of over 8% is considered strong in real estate.