What is Cash-on-Cash Return?

Saving & Investing

Cash-on-Cash Return

A rental property’s annual pre-tax cash flow divided by the actual cash invested.

What does cash-on-cash return mean?

Unlike cap rate, cash-on-cash return accounts for financing — it measures the return on the money you actually put in (down payment and costs), not the full property value. It’s a key gauge of a leveraged real-estate investment.

Put it to use

Investment Property Calculator An investment property can be an excellent investment. This calculator is designed to examine the potential return you might receive from an investment property.

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