Total Cash Needed
Definition:
Total cash needed refers to the amount of cash that is required to complete a purchase or transaction. It can include the purchase price of an asset, as well as any additional costs associated with the purchase, such as closing costs, taxes, and title insurance.
Example:
For example, if you are purchasing a home for $200,000 and you have to pay $5,000 in closing costs, your total cash needed would be $205,000.
The total cash needed is an important factor to consider when making a purchase, as it will determine how much money you will have to come up with. You should make sure that you have enough cash available before you make an offer.