Cash on Cash Return Investopedia: Understanding Forex Trading

4 min read

Cash on Cash Return is a common metric used in real estate investing that measures the return to an investor from an income producing property. This metric is used to measure the investor’s initial investment in the property versus the annual pre-tax cash flow generated from the investment over a given period of time. Cash on Cash Return is often the key metric used by investors when comparing investment opportunities, allowing them to make an informed decision based on their own individual financial goals and specific financial situation.