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Cash-on-Cash Return

A metric that measures the annual pre-tax cash flow relative to the total cash invested in a property. Calculated as annual cash flow divided by total cash invested (including down payment and closing

Direct AnswerA metric that measures the annual pre-tax cash flow relative to the total cash invested in a property. Calculated as annual cash flow divided by total cash invested (including down payment and closing

A metric that measures the annual pre-tax cash flow relative to the total cash invested in a property. Calculated as annual cash flow divided by total cash invested (including down payment and closing costs), expressed as a percentage. A 10% cash-on-cash return means you earn $10,000 annually on a $100,000 investment. See also Cap Rate.

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