Cash on Cash Return Calculator for Forex Trading

Cash on Cash Return Calculator for Forex Trading

Cash on Cash Return Calculator for Forex Trading

What ‌is a Cash on Cash ⁤Return?

Cash on cash return (sometimes referred to as cash flow yield or current yield) is ⁢a common metric used ⁢to⁤ assess the performance of an ‌ investment. It ‌is calculated by dividing⁣ the cash generated by⁢ the investment over a period of time (typically one year) by the current investment cost.‍ It is expressed ⁣as a percentage and is often⁣ used​ as a measure of return for ​income-generating investments such ‍as rental properties or securities‌ issued by a business. It is also⁢ used ‌to compare the performance‌ of different investments.

How is‌ Cash on Cash Return Calculated?

Cash on ‍cash return is often calculated on a⁤ yearly basis. To calculate cash on cash return, ‌subtract all⁢ operating expenses from rental⁣ income and⁢ divide the difference by the total cash‍ invested. Operating⁢ expenses ⁣include mortgage payments, insurance, taxes,‌ repairs, and any ⁢other expenses related to the ownership or operation​ of the property. The resulting number is then multiplied⁢ by 100 to get the⁢ cash on cash return⁢ as a‍ percentage.

Cash​ on Cash Return and​ Forex ‍Trading

Cash on cash return has been ​used for a long time, but in recent years,‍ it has become a very popular way of measuring the success of a Forex trader. Cash⁢ on cash return measures ⁣the profits earned​ by taking trades, by taking into account the current investment cost of the trading account.⁢ This is a very useful metric as it can⁢ give insight into ‌the performance of a trader over a ⁤longer period of time. Many traders use this metric to get a better understanding of how their trading performance is​ changing over time. ⁣

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In the Forex market, the most common way of ​calculating​ cash on cash ​return ⁣is the Gross Profit/Loss ​divided by the ‌investment cost (Total Equity). This will give ​the ⁢trader⁤ a percentage‌ of the ⁤profits earned from the⁤ trades, ​minus any losses. This gives​ traders a better ‍understanding of the long-term profitability ‌of ​their trading style.

The cash on cash⁤ return calculator is a powerful tool that ⁢can be used ⁣to analyze​ the performance of a trader on a⁣ longer timeline. By using this calculator, traders can try to identify areas of their trading strategy that needs improvement. ‍It can also be ‍used ⁤to measure‌ the performance of a trading⁤ system⁢ over ‍a period⁢ of time ⁤and make adjustments if need be.

In​ conclusion, ⁢cash ⁣on cash return‌ is an important metric that can provide traders with valuable insight into the long-term success of their trading⁢ strategy. With the help of this calculator, traders can gain‍ a better understanding ⁢of their performance and make‍ the necessary⁤ adjustments ‍to increase their profits.​

What is Cash-On-Cash ⁤Return?

Cash-on-Cash Return (CoC return) refers to ⁣the money earned on the actual cash invested into a property. This return is⁣ typically expressed as a percentage, ​the amount of money earned (cash flow) over ​the amount of money invested. This is a key metric​ that many real estate⁤ investors⁣ use to evaluate potential⁢ investments. Generally speaking, the⁣ higher the CoC Return, the more attractive⁢ the investment. ⁢

In ‍the real estate​ context, cash-on-cash return is important because it takes​ into account ‌debt financing, which is typically⁣ used when ‍purchasing real estate‌ properties. By factoring in the ‍amount of debt used to purchase the⁣ property, CoC Return captures a⁤ more accurate picture of an ‍investor’s return on investment.

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How to Use the Cash-on-Cash Return Calculator?

Using a ⁤Cash-on-Cash Calculator is relatively simple.⁣ The calculator requires a few key inputs in order to accurately calculate the return. First, the user must input⁤ the amount of ⁤cash invested in ⁢the deal. ‍This ‍includes the purchase price ⁤of the property,⁢ closing costs, up-front reserves (such as ‌a ⁤repair budget or the first few months‍ of rent), and⁤ any other cash invested ​in the deal. Secondly, the user must input ​the expected amount of annual​ net operating income, including any rental income or income from other sources such as ​parking.

Finally, the calculator will require information about any debt financing associated with the deal. ⁢This⁢ includes the principal balance, term length, interest rate,⁣ and any other ‍fees associated ⁤with the loan. Once all of this information is inputted, the calculator ⁤will generate a CoC Return.

Factors That⁤ Affect Cash-On-Cash‌ Return

The most important factor when‌ calculating cash-on-cash ⁢return is the debt financing associated with‌ the ‌investment. The higher the debt financing, ⁣the lower the return. This is because‍ the debt will eat into the cash flow‌ of the investment, reducing the return. Additionally,‌ it’s⁣ important ‌to ⁣note that cash-on-cash ‍return‌ is a short-term return (typically 1-year). Therefore, it ⁣doesn’t account for any of the‌ long-term benefits associated with the investment ⁤property such ‌as appreciation, tax savings, or other benefits.

It’s also important ⁢to note that cash-on-cash return is not necessarily the ‌same as total return. Though the two may be related, they ⁢measure two different things. Cash-on-Cash ⁣return⁢ is used to measure the income generated from the deal, while‍ total return is ⁣used to measure​ the total gains from the investment.

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Finally, it’s important to factor in the risks associated with the investment. ‍Cash-on-cash return may be high,‌ but if there ‌are significant risks associated ‌with the investment, it ⁤may not be worth pursuing.


Cash-on-Cash Return (CoC return) is one of the most ⁣important metrics real estate investors use to ‍evaluate potential investments. It ⁤measures the ⁢money earned on the actual ⁢cash ​invested ‍into⁣ a‍ property. A Cash-on-Cash Return Calculator ⁤is​ a valuable tool that can⁣ help investors accurately ⁤calculate their ⁣return and determine if an investment is ​worth pursuing. However, it’s important to note ‍that⁢ cash-on-cash return isn’t the same ⁢as total return, and it’s important to factor in any risks associated with⁢ the investment.