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How to Calculate Cash on Cash Return Real Estate: An Investor’s Quick Guide
Last updated: March 31, 2025
You want to boost your real estate returns but you need a clear way to measure profitability. That's where cash on cash return comes in. It's a quick ratio that compares your annual pre-tax cash flow to the total amount of cash you've invested.
By focusing on the cash you've actually put in you'll see if a property is meeting your goals or if it's time to adjust your strategy. This powerful tool helps you compare deals quickly without getting lost in complicated math.
Once you learn its basic formula, you'll feel more confident about your investments and better prepared to spot lucrative opportunities. With a solid grasp of cash on cash return, you're ready to dive deeper into the numbers and make informed decisions in any real estate market. For a practical tool to assist you, check out our cash on cash return calculator.
