Cash-On-Cash Return

Dictionary Says

Definition of 'Cash-On-Cash Return'

A rate of return often used in real estate transactions. The calculation determines the cash income on the cash invested. Calculated as:

Cash-On-Cash Return
Investopedia Says

Investopedia explains 'Cash-On-Cash Return'

For example when you purchase a rental property, you might put down only 10% for a cash down payment. Cash-on-cash return would measure the annual return you made on the property in relation to the down payment.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Real Estate

    Land plus ...
  2. Return

    The gain or loss ...
  3. Return

    The gain or loss ...
  4. Actual Return

    The actual gain ...
  5. Expected Return

    The amount one ...
  6. Excess Returns

    Investment ...
  7. Boom

    A period of time ...
  8. Industry

    A classification ...
  9. Prisoner's Dilemma

    A paradox in ...
  10. Price Risk

    The risk of a ...

Articles Of Interest

  1. Find Quality Investments With ROIC

    Return on invested capital is a great way to measure the true value produced by a company. Learn to use the ROIC metric and increase your chances of finding successful investments.
  2. The REIT Way

    Ever considered investing in real estate? Read about the REIT and see if it's the investment for you.
  3. Find The Best Mortgage Rates

    Search and compare the best fixed and adjustable mortgage rates in your area with Bankrate.com.
  4. How To Analyze Real Estate Investment Trusts

    REITs are much like dividend-paying companies, but analyzing them requires consideration of the accounting treatment of property.
  5. How To Assess A Real Estate Investment Trust (REIT)

    Find out why funds from operations is a superior measure of REIT performance.
  6. Currency Carry Trades 101

    This strategy can provide returns even if the currency pair doesn't move a cent.
  7. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  8. The Uses And Limits Of Volatility

    Check out how the assumptions of theoretical risk models compare to actual market performance.
  9. Risk Tolerance Only Tells Half The Story

    Just because you're willing to accept a risk, doesn't mean you always should.
  10. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center