True Cash on Cash ROI

True Cash Flow™ as a percentage of total cash invested.

Example Result

Sample Data

-1.51%

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

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True Cash on Cash ROI Formula

True Cash Flow™ / Total Cash Invested x 100

-$1,335 / $110,830 x 100

-1.51%

What This Means

A sample property priced at $385,000 with $2,850/month rent has a true cash on cash roi of -1.51% at Purchase (Month 0). When comparing real estate to other investments, you should account for all cash benefits. True Cash on Cash ROI includes the tax savings that make real estate unique. A property showing 5% standard cash-on-cash might deliver 7%+ True Cash on Cash ROI after depreciation benefits.

Where This Value Comes From

True Cash on Cash ROI is not entered directly — it is calculated from True Cash Flow™ and Total Cash Invested. See the formula breakdown above and the detailed inputs below.

Inputs That Determine True Cash on Cash ROI

True Cash Flow™

Cash flow before tax plus the cash benefit of depreciation tax savings.

-$1,335

Purchase

Total Cash Invested

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

$110,830

Purchase

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Why It Matters

When comparing real estate to other investments, you should account for all cash benefits. True Cash on Cash ROI includes the tax savings that make real estate unique. A property showing 5% standard cash-on-cash might deliver 7%+ True Cash on Cash ROI after depreciation benefits.

Detailed Explanation

True Cash on Cash ROI divides True Cash Flow™ by your total cash invested. Unlike standard cash-on-cash return which only considers operating cash flow, this metric includes the cash benefit of depreciation tax savings, giving a more complete picture of your cash return.