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Updated almost 5 years ago,

Mike Celli's profile image
Mike Celli's profile image
Mike Celli
  • from Washington, DC
  • Member since Jan 29, 2019
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81
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38
Votes
Mike Celli's profile image
Mike Celli's profile image
Mike Celli
  • from Washington, DC
  • Member since Jan 29, 2019
Connect
Mike Celli
  • Washington, DC
38
Votes |
81
Posts
Starting Out

Cash on Cash Return vs. ROI

Mike Celli
  • Washington, DC
Posted

I know that Cash on Cash Return = Total Cash Flow Pre-Tax/Actual Cash Invested. ROI = Net Income/Total Cost.

My question is whether the Total Cost in the ROI formula includes the Sale Price of the property or just the amount of actual cash invested.

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