Glossary of Terms

Cash-On-Cash Return 2015-09-16 08:00:00

Cash-On-Cash Return

Ratio of annual before-tax cash flow from an investment to the total amount of cash invested, represented as a percentage.

For example, if an investment property generated $100,000 of cash flow and an investor had invested $1,000,000 of equity, the cash-on-cash return would be 10.0% ($100,000 / $1,000,000).

 


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