Cash-On-Cash Return - Business concept of the day
Definition: The cash on cash return measures the annual return the investor gains on the total value of property paid. It measures the percentage of pre-tax inflows received for a year over the total value of the property.
Example: 10,000 rent per month on a 10,000,000 valued property will give you a 1.2% cash on cash return for the year.
Business insight: Comparing this figure between several other real estate investments can help you evaluate performance of your real estate assets and help you make prudent investment decisions.
Written by
GlobalLinker Staff
GlobalLinker Content Team · Gurgaon · connections
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