Cash-on-Cash Return

Cash-on-Cash Return measures the annual pre-tax cash flow relative to the total cash invested.

Unlike cap rate, cash-on-cash return factors in financing costs (debt service), giving a more realistic picture of the actual cash yield an investor receives. It is particularly useful when comparing leveraged investments. Nile Equity Group targets strong cash-on-cash returns as one of the primary metrics for evaluating investment quality, alongside equity growth potential.