Why Cash-on-Cash Return Matters
Cash-on-cash return (CoC) is a critical metric for real estate investors because it:
Measures your actual return based on cash invested
Accounts for debt service, capital expenses, and net cash flow
Helps compare performance across properties and portfolios of different sizes
For more on how successful investors use this metric, see our blog post on cash-on-cash returns.
Where to Find the Cash-on-Cash Return Metric
You'll see this metric on your Stessa dashboards, at both the portfolio and property level:
It’s located in the top-right corner of the dashboard.
It shows your Trailing 12-Month (T12) return for a more stable performance snapshot.
Monthly fluctuations are common. The T12 metric smooths out one-time anomalies for a more reliable view.
How Stessa Calculates Cash-on-Cash Return
Here's the formula Stessa uses:
Net cash flow for the month
(after all debt service, including capex, not including transfers)
divided by
Acquisition price
less original mortgage balance
less SUM of all net cash flow prior to "date placed in service"
Stessa’s formula may differ slightly from other sources (e.g., excluding capex or including principal). This is the standardized version used in the dashboard.
Troubleshooting Your Cash-on-Cash Return
Fixing the Numerator (Net Cash Flow)
Make sure your bank and loan accounts are connected.
Make sure all transactions are properly categorized and assigned to the correct property.
Run the Net Cash Flow report to verify accuracy.
Fixing the Denominator (Cash Invested)
On the Properties page, review the Acquisition Price and Date Placed in Service.
Add any missing closing costs on your Transactions page.
Review and correct the Original Mortgage Amount in the Loan Balance section.
Confirm capital expenses are categorized correctly, with the right dates:
Before the Date Placed in Service → added to cash invested
After → affects monthly net cash flow