# Understanding Your Cash on Cash Return

**URL:** <https://community.stessa.com/t/understanding-your-cash-on-cash-return/11287>\
**Category:** Tips & Tricks\
**Created:** [July 16, 2023, 11:16am UTC](https://community.stessa.com/t/understanding-your-cash-on-cash-return/11287 "2023-07-16T11:16:34Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![4764randall](https://avatars.discourse-cdn.com/v4/letter/4/d26b3c/32.png) [@4764randall](https://community.stessa.com/u/4764randall)\
**Post date:** [July 16, 2023, 11:16am UTC](https://community.stessa.com/t/understanding-your-cash-on-cash-return/11287/1 "2023-07-16T11:16:34Z")

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Your description of the cash on cash return is incorrect. You need to mention that the monthly cash flow is annualized (multiplied by 12 months ) before being divided by the original cash investment.

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**Author:** ![meritageinvestmentpa](https://avatars.discourse-cdn.com/v4/letter/m/8dc957/32.png) [@meritageinvestmentpa](https://community.stessa.com/u/meritageinvestmentpa)\
**Post date:** [June 20, 2024, 5:26pm UTC](https://community.stessa.com/t/understanding-your-cash-on-cash-return/11287/2 "2024-06-20T17:26:46Z")

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This is correct. Our Cash on Cash does not work because our loans are higher than the original purchase amount. Our cash on cash is high but Stessa can not currently handle the calculation.