Cash-On-Cash

Cash-On-Cash is a term short for cash-on-cash return on investment, used to describe the return on investment for properties received from the cash first invested. Cash-On-Cash is often a cash return that is higher than a return, this is calculated using the reported margin of profit. First subtract all cash expenses from the operation of the property, including debt service, from the cash income for the same period, then divide the sum by the cash amount invested for the purchase of the property. Finally multiply the result by 100. This is expressed as a percentage so investors can compare to other investment properties.