CalculateRealEstateROI

ROI Metrics

Cash-on-Cash Return

Annual pre-tax cash flow divided by total cash invested in the deal.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

The real cash yield on the money you actually wrote a check for — including down payment, closing, and rehab.

Formula

CoC = Annual Pre-Tax Cash Flow / Total Cash Invested

Examples

  • $8k annual cash flow on $80k down = 10% CoC.
  • Targets: 8-12% in cash-flow markets, 4-7% appreciation markets.

Common mistakes

  • Forgetting to include closing costs in the denominator.
  • Confusing CoC with cap rate.

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