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Investor Basics

Want to know more about cash on cash returns?

Cash on Cash Returns is a very useful indication of how much cash you can expect every year in relation to how much cash you put into the deal. It is calculated by looking at how much cash you will earn after all the expenses of a project have been paid. Cash on Cash is represented as a % of your initial cash investment. Note that Cash on Cash indicates your return before you have paid any tax – any tax that you must pay is not considered in the calculation. (Example: If you invested $100 in cash into a deal, and you receive $10 in returns from the deal each year, the Cash on Cash return will be 10%).