Cash-On-Cash Return

Filed Under » ,
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.

Related Definitions

  •

    Real Estate

    Land plus anything permanently fixed to it, including buildings, sheds and other items attached to the structure. Although, media often refers to the "real estate market" from the ...
    Read More »

  • Return

    The gain or loss of a security in a particular period. The return consists of the income and the capital gains relative on an investment. It is usually quoted as a percentage.
    Read More »

  • Return

    The gain or loss of a security in a particular period. The return consists of the income and the capital gains relative on an investment. It is usually quoted as a percentage.
    Read More »

    • Actual Return

      The actual gain or loss of an investor. This can be expressed in the following formula: expected return (ex-ante) plus the effect of firm-specific and economy-wide news.
      Read More »

    • Expected Return

      The average of a probability distribution of possible returns, calculated by using the following formula:
      Read More »

    • Excess Returns

      Investment returns from a security or portfolio that exceed a benchmark or index with a similar level of risk. It is widely used as a measure of the value added by the portfolio or ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions