Investment Metrics
Cash-on-Cash Return
Annual cash flow relative to cash invested
Full Definition
Cash-on-cash return measures the annual pre-tax cash flow divided by the total cash invested. Unlike ROI, it focuses solely on actual cash invested (deposit, stamp duty, refurbishment) rather than total property value. This metric is particularly useful for leveraged investments where mortgages are used.
Related Terms
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Analyse a PropertyMore Investment Metrics Terms
ROI (Return on Investment)
The percentage return on your property investment
Gross Yield
Annual rental income as a percentage of property price
Net Yield
Annual profit after expenses as a percentage of property price
Capital Growth
Increase in property value over time
Void Allowance
Budget set aside for empty periods