cash-on-cash return


Cash-on-cash return

A method used to find the return on investments when there is no active secondary market. The yield is determined by dividing the annual cash income by the total investment. See: Current yield or yield to maturity.

Cash-on-Cash Return

A way to calculate the rate of return on an investment, especially in real estate. One calculates the cash-on-cash return by dividing the cash inflow on the investment in a given year by the cash outflow originally made. For example, if one buys a property for $100,000, this amount is the denominator when calculating the cash-on-cash return each year.

cash-on-cash return

See cash-on-cash.