What is cash-on-cash return?
Published October 1, 2026 · 1 minute read
The answer
Cash-on-cash return compares a specified annual cash-flow measure with the cash invested. The definition of both inputs matters, including whether setup, reserves, debt payments, and replacement spending are included.
It is not the same as total investment return and does not capture every risk or appreciation outcome. Use it to compare consistently defined scenarios rather than as a standalone purchase signal.
This answer is general education. Apply it to the property's actual location, agreements, and circumstances. Where a decision requires professional advice, use a qualified adviser.
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