Cash on Cash Return Formula

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Cash on Cash Return is a measure of the annual return on an investment property, calculated as the ratio of the property's net operating income to the initial cash investment. Check FAQs
COCR=(NOITCI)100
COCR - Cash on Cash Return?NOI - Net Operating Income?TCI - Total Cash Invested?

Cash on Cash Return Example

With values
With units
Only example

Here is how the Cash on Cash Return equation looks like with Values.

Here is how the Cash on Cash Return equation looks like with Units.

Here is how the Cash on Cash Return equation looks like.

119Edit=(59500Edit50000Edit)100
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Cash on Cash Return Solution

Follow our step by step solution on how to calculate Cash on Cash Return?

FIRST Step Consider the formula
COCR=(NOITCI)100
Next Step Substitute values of Variables
COCR=(5950050000)100
Next Step Prepare to Evaluate
COCR=(5950050000)100
LAST Step Evaluate
COCR=119

Cash on Cash Return Formula Elements

Variables
Cash on Cash Return
Cash on Cash Return is a measure of the annual return on an investment property, calculated as the ratio of the property's net operating income to the initial cash investment.
Symbol: COCR
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Net Operating Income
Net Operating Income is the total revenue generated from a property minus operating expenses but excluding debt service and income taxes.
Symbol: NOI
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Total Cash Invested
Total Cash Invested refers to the sum of all funds put into an investment, including initial capital, additional investments, and any related expenses or costs.
Symbol: TCI
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

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How to Evaluate Cash on Cash Return?

Cash on Cash Return evaluator uses Cash on Cash Return = (Net Operating Income/Total Cash Invested)*100 to evaluate the Cash on Cash Return, The Cash on Cash Return is a measure of the annual return on an investment property, calculated as the ratio of the property's net operating income to the initial cash investment. Cash on Cash Return is denoted by COCR symbol.

How to evaluate Cash on Cash Return using this online evaluator? To use this online evaluator for Cash on Cash Return, enter Net Operating Income (NOI) & Total Cash Invested (TCI) and hit the calculate button.

FAQs on Cash on Cash Return

What is the formula to find Cash on Cash Return?
The formula of Cash on Cash Return is expressed as Cash on Cash Return = (Net Operating Income/Total Cash Invested)*100. Here is an example- 119 = (59500/50000)*100.
How to calculate Cash on Cash Return?
With Net Operating Income (NOI) & Total Cash Invested (TCI) we can find Cash on Cash Return using the formula - Cash on Cash Return = (Net Operating Income/Total Cash Invested)*100.
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