Oycora methodology
Cash-on-Cash Return
Annual pre-tax cash flow expressed as a percentage of initial cash invested.
Methodology v1.0Effective 2026-08-23Last reviewed 2026-08-23
How this is calculated
Cash-on-cash return = annual pre-tax cash flow / initial cash invested
Oycora reports the metric as unavailable when no valid initial-cash denominator exists.
Why it matters
It connects modeled annual cash flow with the cash committed at acquisition.
What is included
- Annual pre-tax cash flow
- Initial cash invested
What is excluded
- Appreciation
- Principal paydown
- Sale proceeds
- Income taxes
Assumptions and limitations
- It is not an annualized total return, IRR, or measure of sale profit.
Used in Oycora
Related learning
Property Analysis
What Is Cash-on-Cash Return in Real Estate?
Cash-on-cash return measures how much annual pre-tax cash flow a property produces relative to the cash you actually invested. Learn how to calculate it, what belongs in the formula, how financing affects the result, and why it should not be confused with cap rate or total ROI.