Cash-On-Cash Return


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

BREAKING DOWN '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.

  1. Real Estate

    Land plus anything on it, including buildings and natural resources.
  2. Excess Returns

    Investment returns from a security or portfolio that exceed a ...
  3. Expected Return

    The amount one would anticipate receiving on an investment that ...
  4. Return

    The gain or loss of a security in a particular period. The return ...
  5. Actual Return

    The actual gain or loss of an investor. This can be expressed ...
  6. Accountant

    A professional who performs accounting functions such as audits ...
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