Instructions for using The Cash on Cash Calculator
The values in the fields below are example values.
To begin, select the method of purchase: cash or financing. Based on the option selected, several additional fields will be displayed where you should enter pertinent amounts to calculate your total cash invested. Finally, enter the expected net annual pre-tax income. In other words, enter the amount of cash that is left over at the end of the year after paying all the bills, including the mortgage payments.
As you enter your values, the calculator works continuously in the background to calculate and display the cash on cash return. Feel free to play with the numbers and try various what-if scenarios so you can see how your return changes as you adjust the total cash invested.