Cash-on-Cash Return

Cash-on-cash return is a financial metric that measures the annual pre-tax cash income earned on the actual cash invested in a property or investment, expressed as a percentage — calculated by dividing annual cash flow (before taxes) by the total cash invested (equity, not including financed debt). Unlike total return metrics that include appreciation, cash-on-cash return focuses purely on the income yield generated on deployed equity. It is most commonly used in real estate investment analysis but is also applicable to private equity and infrastructure investments. For investors on Ventura Securities evaluating yield-generating assets or listed REITs, cash-on-cash return offers a straightforward measure of income efficiency and helps compare cash yields across alternative investment opportunities.