What is cash-on-cash return?
Annual pre-tax cash flow to equity ÷ equity invested. Measures the cash yield on the investor’s actual out-of-pocket capital after debt service.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.