Cash on cash return
In real estate investing, the cash-on-cash return is the ratio of annual before-tax cash flow to the total amount of cash invested, expressed as a percentage. Cash-on-Cash Return = Annual Before-Tax Cash Flow Total Cash Invested {\displaystyle {\mbox{Cash-on-Cash Return}}={\frac {\mbox{Annual Before-Tax Cash Flow}}{\mbox{Total Cash Invested}}}} The cash-on-cash return, or "cash yield", is often used to evaluate the cash flow from income-producing assets, such as a rental property.