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 follows:




'Cash-On-Cash Return' Explained
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.