Cash on Cash Return

IRR

Advanced Return Metrics Most Popular Returns & ROI

Total ROI

Combined return from cash flow, appreciation, loan paydown, and Cash Flow from Depreciation™.

Example Result

Sample Data

15.36%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Total ROI Formula

(Cash Flow + Appreciation + Principal Paydown + Cash Flow from Depreciation™) / Total Cash Invested x 100

(-$4,023 + $11,550 + $3,129 + $2,688) / $110,830 x 100

15.36%

What This Means

A sample property priced at $385,000 with $2,850/month rent has a total roi of 15.36% at Purchase (Month 0). Most people only think about cash flow, but real estate builds wealth four ways simultaneously. Total ROI reveals the complete picture. A property with modest cash flow might deliver 20%+ total ROI when you include appreciation, someone else (your tenant) paying down your mortgage, and the tax savings from depreciation.

Where This Value Comes From

Total ROI is not entered directly — it is calculated from Cash Flow Before Tax, Appreciation, Principal Paydown, Cash Flow from Depreciation™, Total Cash Invested, and Appreciation Rate. See the formula breakdown above and the detailed inputs below.

Inputs That Determine Total ROI

Cash Flow Before Tax

Cash remaining after operating expenses and debt service.

-$4,023

Purchase

Appreciation

Total dollar value of property appreciation — combining natural market-driven appreciation (organic) and value added through owner improvements (forced).

$11,550

Purchase

Principal Paydown

Mortgage principal reduction from payments during the selected period.

$3,129

Purchase

Cash Flow from Depreciation™

Additional effective cash flow generated by depreciation tax savings.

$2,688

Purchase

Total Cash Invested

Total cash committed to the property: closing costs, rent-ready, reserves, and negative cash flow.

$110,830

Purchase

Appreciation Rate

The expected annual property value appreciation rate.

Found on your fhfa house price index

3.00%

Purchase

Calculations That Use Total ROI

Equivalent Stock Return

Platform Distribution

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Why It Matters

Most people only think about cash flow, but real estate builds wealth four ways simultaneously. Total ROI reveals the complete picture. A property with modest cash flow might deliver 20%+ total ROI when you include appreciation, someone else (your tenant) paying down your mortgage, and the tax savings from depreciation.

Detailed Explanation

Total ROI captures all four wealth-building components of real estate in a single number: cash flow, property appreciation, mortgage principal paydown, and Cash Flow from Depreciation™ (tax savings from depreciation). It represents the total annualized return on your cash investment at any point in time.