{"id":11372,"date":"2025-12-18T22:37:40","date_gmt":"2025-12-18T22:37:40","guid":{"rendered":"https:\/\/griffinfunding.com\/?p=11372"},"modified":"2026-03-22T01:01:00","modified_gmt":"2026-03-22T01:01:00","slug":"cash-on-cash-return-in-real-estate","status":"publish","type":"post","link":"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/","title":{"rendered":"Cash on Cash Return in Real Estate: Definition, Formula, &#038; Examples"},"content":{"rendered":"<h2><span style=\"font-weight: 400;\">What Is Cash on Cash Return?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Cash on cash return (CoC) is a metric that measures the annual income you generate from a rental property relative to the amount of cash you actually invested. It tells you how much money your property puts back into your pocket each year compared to what you paid upfront.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The cash on cash return formula is: Cash on Cash Return = Annual Cash Income \u00f7 Cash Invested. This simple calculation highlights the profitability of the actual dollars you put into a deal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cash on cash return differs from other metrics. For example, ROI considers your total return over time. The<\/span><a href=\"https:\/\/griffinfunding.com\/blog\/mortgage\/cap-rate-on-rental-property\/\"> <span style=\"font-weight: 400;\">cap rate on rental property<\/span><\/a><span style=\"font-weight: 400;\"> focuses on the property&#8217;s net operating income relative to its purchase price.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Real estate investors use CoC to compare different investment opportunities, especially when evaluating properties with different down payment requirements or financing structures. If you&#8217;re deciding between two properties with similar prices but different financing options, CoC will help you determine which deal generates immediate returns on your actual cash investment.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Cash on Cash Return Formula<\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-11375\" src=\"https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image4.png\" alt=\"\" width=\"1999\" height=\"745\" srcset=\"https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image4.png 1999w, https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image4-300x112.png 300w, https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image4-1024x382.png 1024w, https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image4-768x286.png 768w, https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image4-1536x572.png 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The cash on cash return formula real estate investors rely on is:<\/span><\/p>\n<p><b>Cash on Cash Return = (Annual Pre-Tax Cash Flow \u00f7 Total Cash Invested) \u00d7 100<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Now, let\u2019s break down the terms:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Annual pre-tax cash flow<\/b><span style=\"font-weight: 400;\">: This is your net cash income after you pay all your expenses but before you pay taxes. To calculate, take your total rental income for the year and subtract operating expenses.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Total cash invested<\/b><span style=\"font-weight: 400;\">: Includes every dollar that comes out of your pocket at the start. This means your down payment, closing costs, and any upfront repairs.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It&#8217;s important to understand that &#8220;total purchase price&#8221; and &#8220;cash invested&#8221; are not the same thing. If you buy a $300,000 property with a 20% down payment, your cash invested isn&#8217;t $300,000. Your cash invested is the $60,000 down payment plus any additional upfront costs.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Cash on Cash Return Examples<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let&#8217;s look at some examples of how to calculate cash on cash return.<\/span><\/p>\n<p><b>Example 1<\/b><span style=\"font-weight: 400;\">: You purchase a single-family home for $250,000. You put down 20% ($50,000), pay $4,000 in closing costs, and spend $6,000 on repairs before your first tenant moves in. Your total cash invested is $60,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The property generates $2,000 per month in rent, giving you $24,000 in annual rental income. Your annual expenses include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mortgage payment: $10,800<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Property taxes: $2,400<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Insurance: $1,200<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Maintenance: $1,800<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Property management: $2,400<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Vacancy allowance: $1,200<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Your total annual expenses are $19,800. Your annual pre-tax cash flow is $24,000 &#8211; $19,800 = $4,200.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using the cash on cash return formula: ($4,200 \u00f7 $60,000) \u00d7 100 = 7%<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your cash on cash return is 7%.<\/span><\/p>\n<p><b>Example 2<\/b><span style=\"font-weight: 400;\">: You&#8217;re considering the same property with two different financing options. In Scenario A, you put down 25% ($62,500) plus $4,000 in closing costs, for a total cash investment of $66,500. Your annual pre-tax cash flow is $5,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In Scenario B, you put down 20% ($50,000) plus $4,000 in closing costs, for a total cash investment of $54,000. Your annual pre-tax cash flow is $4,200.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Scenario A CoC: ($5,000 \u00f7 $66,500) \u00d7 100 = 7.5%\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Scenario B CoC: ($4,200 \u00f7 $54,000) \u00d7 100 = 7.8%<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even though Scenario A generates more annual cash flow, Scenario B has a higher CoC because you invested less cash upfront.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What Is a Good Cash on Cash Return?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Industry benchmarks suggest that a CoC of 8-12% is generally considered good for rental properties. Several factors influence what you should consider an acceptable CoC:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Location<\/b><span style=\"font-weight: 400;\">:<\/span> <span style=\"font-weight: 400;\">Properties in high-demand urban areas might deliver lower CoC (5-7%) but offer greater appreciation potential and lower risk. Properties in less-established markets might offer higher returns (10-15%) but come with increased risk and uncertainty.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Property type<\/b><span style=\"font-weight: 400;\">: Single-family homes, multi-family properties, and commercial real estate have different typical return ranges. If you&#8217;re working to<\/span><a href=\"https:\/\/griffinfunding.com\/blog\/dscr-loans\/how-to-build-a-real-estate-portfolio\/\"> <span style=\"font-weight: 400;\">build a real estate portfolio<\/span><\/a><span style=\"font-weight: 400;\">, you&#8217;ll likely encounter varying CoC benchmarks across different property types.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Risk tolerance<\/b><span style=\"font-weight: 400;\">: Conservative investors might accept a 6% CoC in exchange for a low-maintenance property in a prime location. Aggressive investors might target 12% or higher returns and accept the additional risk that comes with less proven markets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Financing terms<\/b><span style=\"font-weight: 400;\">: Properties purchased with<\/span><a href=\"https:\/\/griffinfunding.com\/traditional-mortgages\/investment-property-loans\/\"> <span style=\"font-weight: 400;\">investment property loans<\/span><\/a><span style=\"font-weight: 400;\"> that have lower down payments can show higher CoC because you&#8217;re investing less cash upfront.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">How to Improve Cash on Cash Return<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">You can boost your CoC by increasing your cash flow or reducing your initial cash investment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To increase your cash flow:<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-11377\" src=\"https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image2.png\" alt=\"\" width=\"1999\" height=\"849\" srcset=\"https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image2.png 1999w, https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image2-300x127.png 300w, https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image2-1024x435.png 1024w, https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image2-768x326.png 768w, https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image2-1536x652.png 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Raise rents strategically<\/b><span style=\"font-weight: 400;\">:<\/span> <span style=\"font-weight: 400;\">Research comparable properties in your area and adjust your rental rates to match market value.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Add revenue-generating amenities<\/b><span style=\"font-weight: 400;\">: Consider charging for parking spaces, offering laundry facilities, or allowing pets for an additional monthly rent or deposit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reduce operating expenses<\/b><span style=\"font-weight: 400;\">: Shop for better insurance rates, implement preventive maintenance, use energy-efficient appliances, and screen tenants carefully.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Minimize vacancy periods<\/b><span style=\"font-weight: 400;\">: Market your property before your tenant moves out, price it competitively, and consider lease renewal incentives.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To lower your total cash investment:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Negotiate a lower down payment<\/b><span style=\"font-weight: 400;\">:<\/span> <span style=\"font-weight: 400;\">While this increases your mortgage payment, it can significantly boost your CoC by reducing your upfront cash outlay.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reduce renovation costs<\/b><span style=\"font-weight: 400;\">: Focus on repairs that directly impact rent prices rather than over-improving the property.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Cash on Cash Return vs Other Real Estate Metrics<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Real estate investors have several metrics to evaluate property performance.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>CoC vs ROI<\/b><span style=\"font-weight: 400;\">: ROI measures your total return on the property, including cash flow, appreciation, mortgage paydown, and tax benefits. Cash on cash return focuses solely on annual cash flow relative to your initial cash investment. Learn how to<\/span><a href=\"https:\/\/griffinfunding.com\/blog\/mortgage\/how-to-calculate-roi-on-rental-property\/\"> <span style=\"font-weight: 400;\">calculate ROI<\/span><\/a><span style=\"font-weight: 400;\"> on a rental property to complement your CoC analysis.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>CoC vs Cap rate<\/b><span style=\"font-weight: 400;\">: Cap rate compares a property&#8217;s net operating income to its purchase price, without considering your financing structure. Two investors buying the same property at the same price could have identical cap rates but different CoC depending on down payments and loan terms.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>CoC vs Internal Rate of Return<\/b><span style=\"font-weight: 400;\">: IRR is a calculation that factors in the time value of money and projects your total return over the entire holding period. IRR is better for investors evaluating long-term holds and comparing real estate to other investment types.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To sum it up:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use cash on cash return when you&#8217;re comparing multiple properties with different financing options.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use ROI when assessing overall investment performance including appreciation, calculating total wealth building over time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use cap rate when comparing properties across different markets or evaluating a property&#8217;s income-generating potential independent of financing.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It\u2019s important to note that CoC doesn&#8217;t account for property appreciation, tax benefits, or equity buildup from mortgage principal payments. A property with a 6% CoC that appreciates 5% annually builds wealth differently than a property with a 10% CoC in a flat market.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Begin or Expand Your Real Estate Investment Portfolio<\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-11376\" src=\"https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image5.jpg\" alt=\"A magnifying glass examining model homes that are placed on stacks of coins.\" width=\"1999\" height=\"1333\" srcset=\"https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image5.jpg 1999w, https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image5-300x200.jpg 300w, https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image5-1024x683.jpg 1024w, https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image5-768x512.jpg 768w, https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image5-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/>\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Griffin Funding specializes in helping investors acquire and grow real estate portfolios. Whether you&#8217;re looking for<\/span><a href=\"https:\/\/griffinfunding.com\/non-qm-mortgages\/dscr-loans\/\"> <span style=\"font-weight: 400;\">DSCR loans<\/span><\/a><span style=\"font-weight: 400;\"> or<\/span><a href=\"https:\/\/griffinfunding.com\/non-qm-mortgages\/\"> <span style=\"font-weight: 400;\">alternative mortgage loans<\/span><\/a><span style=\"font-weight: 400;\">, our team understands the unique needs of real estate investors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Plus, you can track your investment performance and manage your finances more effectively with the<\/span><a href=\"https:\/\/gold.griffinfunding.com\/pfm\/registration\/invite?key=1c204fd9-839b-4775-aed1-9844766b60a6\"> <span style=\"font-weight: 400;\">Griffin Gold app<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"#popmake-6804\">Get started<\/a> with an investment property loan online or contact us today to discuss your financing options.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What Is Cash on Cash Return? Cash on cash return (CoC) is a metric that measures the annual income you generate from a rental property relative to the amount of cash you actually invested. It tells you how much money your property puts back into your pocket each year compared to what you paid upfront.<a class=\"moretag\" href=\"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/\">&#8230;<\/a><\/p>\n","protected":false},"author":2,"featured_media":11374,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[100],"tags":[],"class_list":["post-11372","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgage"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Cash on Cash Return in Real Estate: Definition &amp; Formula | Griffin Funding<\/title>\n<meta name=\"description\" content=\"Learn what cash on cash return is, how to calculate it, and why it matters in real estate investing. Includes formula, examples, and pro tips.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cash on Cash Return in Real Estate: Definition, Formula, &#038; Examples\" \/>\n<meta property=\"og:description\" content=\"Learn what cash on cash return is, how to calculate it, and why it matters in real estate investing. Includes formula, examples, and pro tips.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/\" \/>\n<meta property=\"og:site_name\" content=\"Griffin Funding\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/griffinfunding\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/griffinfunding\" \/>\n<meta property=\"article:published_time\" content=\"2025-12-18T22:37:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-22T01:01:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image3-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1999\" \/>\n\t<meta property=\"og:image:height\" content=\"1333\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Bill Lyons\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@https:\/\/x.com\/griffinfunding\" \/>\n<meta name=\"twitter:site\" content=\"@griffinfunding\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bill Lyons\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/blog\\\/mortgage\\\/cash-on-cash-return-in-real-estate\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/blog\\\/mortgage\\\/cash-on-cash-return-in-real-estate\\\/\"},\"author\":{\"name\":\"Bill Lyons\",\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/#\\\/schema\\\/person\\\/83571cd7f738a7f95cae1a44ad0b7ef1\"},\"headline\":\"Cash on Cash Return in Real Estate: Definition, Formula, &#038; Examples\",\"datePublished\":\"2025-12-18T22:37:40+00:00\",\"dateModified\":\"2026-03-22T01:01:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/blog\\\/mortgage\\\/cash-on-cash-return-in-real-estate\\\/\"},\"wordCount\":1136,\"publisher\":{\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/blog\\\/mortgage\\\/cash-on-cash-return-in-real-estate\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/griffinfunding.com\\\/wp-content\\\/uploads\\\/2025\\\/12\\\/image3-1.jpg\",\"articleSection\":[\"Mortgage\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/blog\\\/mortgage\\\/cash-on-cash-return-in-real-estate\\\/\",\"url\":\"https:\\\/\\\/griffinfunding.com\\\/blog\\\/mortgage\\\/cash-on-cash-return-in-real-estate\\\/\",\"name\":\"Cash on Cash Return in Real Estate: Definition & Formula | Griffin Funding\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/blog\\\/mortgage\\\/cash-on-cash-return-in-real-estate\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/blog\\\/mortgage\\\/cash-on-cash-return-in-real-estate\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/griffinfunding.com\\\/wp-content\\\/uploads\\\/2025\\\/12\\\/image3-1.jpg\",\"datePublished\":\"2025-12-18T22:37:40+00:00\",\"dateModified\":\"2026-03-22T01:01:00+00:00\",\"description\":\"Learn what cash on cash return is, how to calculate it, and why it matters in real estate investing. Includes formula, examples, and pro tips.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/blog\\\/mortgage\\\/cash-on-cash-return-in-real-estate\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/griffinfunding.com\\\/blog\\\/mortgage\\\/cash-on-cash-return-in-real-estate\\\/\"]}],\"about\":{\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/#organization\"}},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/blog\\\/mortgage\\\/cash-on-cash-return-in-real-estate\\\/#primaryimage\",\"url\":\"https:\\\/\\\/griffinfunding.com\\\/wp-content\\\/uploads\\\/2025\\\/12\\\/image3-1.jpg\",\"contentUrl\":\"https:\\\/\\\/griffinfunding.com\\\/wp-content\\\/uploads\\\/2025\\\/12\\\/image3-1.jpg\",\"width\":1999,\"height\":1333,\"caption\":\"Bags of money and a small model home on opposite sides of a balance scale.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/blog\\\/mortgage\\\/cash-on-cash-return-in-real-estate\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/griffinfunding.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Mortgage\",\"item\":\"https:\\\/\\\/griffinfunding.com\\\/blog\\\/category\\\/mortgage\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Cash on Cash Return in Real Estate: Definition, Formula, &#038; Examples\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/#website\",\"url\":\"https:\\\/\\\/griffinfunding.com\\\/\",\"name\":\"Griffin Funding\",\"description\":\"Mortgages &amp; Home Loan Lenders\",\"publisher\":{\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/griffinfunding.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/#organization\",\"name\":\"Griffin Funding\",\"url\":\"https:\\\/\\\/griffinfunding.com\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/griffinfunding.com\\\/wp-content\\\/uploads\\\/2020\\\/09\\\/griffinteamlogo-42.jpg\",\"contentUrl\":\"https:\\\/\\\/griffinfunding.com\\\/wp-content\\\/uploads\\\/2020\\\/09\\\/griffinteamlogo-42.jpg\",\"width\":500,\"height\":500,\"caption\":\"Griffin Funding\"},\"image\":{\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/griffinfunding\",\"https:\\\/\\\/x.com\\\/griffinfunding\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/griffin-funding\",\"https:\\\/\\\/www.youtube.com\\\/@griffinfunding\",\"https:\\\/\\\/www.instagram.com\\\/griffin_funding\",\"https:\\\/\\\/www.bbb.org\\\/us\\\/ca\\\/san-diego\\\/profile\\\/mortgage-lenders\\\/griffin-funding-1126-172009171\",\"https:\\\/\\\/www.zillow.com\\\/lender-profile\\\/griffinfunding\\\/\",\"https:\\\/\\\/www.experience.com\\\/reviews\\\/company\\\/griffin-funding-1426\"],\"description\":\"Griffin Funding, founded in 2013, is a nationwide direct-to-consumer mortgage lender that specializes in bank statement loans for the self-employed, DSCR loans for real estate investors, VA loans for veterans and active-duty military, and home equity loans for homeowners. Griffin Funding is dedicated to delivering 5-star service, a fully-digital easy-to-use experience, and financial expertise.\",\"email\":\"info@griffinfunding.com\",\"telephone\":\"8005275910\",\"legalName\":\"Griffin Funding, Inc.\",\"foundingDate\":\"2013-09-17\",\"duns\":\"07-979-5037\",\"leiCode\":\"5493002WVA17MT4UFH84\",\"naics\":\"522292\",\"numberOfEmployees\":{\"@type\":\"QuantitativeValue\",\"minValue\":\"51\",\"maxValue\":\"200\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/griffinfunding.com\\\/#\\\/schema\\\/person\\\/83571cd7f738a7f95cae1a44ad0b7ef1\",\"name\":\"Bill Lyons\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/c0b679e4960454cca8759c2cccd0b4dcf2acd3f5bb2ef255efd806cf23263763?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/c0b679e4960454cca8759c2cccd0b4dcf2acd3f5bb2ef255efd806cf23263763?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/c0b679e4960454cca8759c2cccd0b4dcf2acd3f5bb2ef255efd806cf23263763?s=96&d=mm&r=g\",\"caption\":\"Bill Lyons\"},\"description\":\"Bill Lyons is the Founder, CEO &amp; President of Griffin Funding. Founded in 2013, Griffin Funding is a national boutique mortgage lender focusing on delivering 5-star service to its clients. Mr. Lyons has 25 years of experience in the mortgage business. Lyons is seen as an industry leader and expert in real estate finance. Lyons has been featured in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to keep up with important changes in the industry to deliver the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc. 5000 fastest-growing companies list five times in its 12 years in business. Follow his updates on LinkedIn.\",\"sameAs\":[\"https:\\\/\\\/griffinfunding.com\\\/our-team\\\/bill-lyons\\\/\",\"https:\\\/\\\/www.facebook.com\\\/griffinfunding\",\"https:\\\/\\\/www.linkedin.com\\\/in\\\/lyons\\\/\",\"https:\\\/\\\/x.com\\\/https:\\\/\\\/x.com\\\/griffinfunding\",\"https:\\\/\\\/www.youtube.com\\\/@Griffinfunding\"],\"url\":\"https:\\\/\\\/griffinfunding.com\\\/blog\\\/author\\\/griffinfunding\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Cash on Cash Return in Real Estate: Definition & Formula | Griffin Funding","description":"Learn what cash on cash return is, how to calculate it, and why it matters in real estate investing. Includes formula, examples, and pro tips.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/","og_locale":"en_US","og_type":"article","og_title":"Cash on Cash Return in Real Estate: Definition, Formula, &#038; Examples","og_description":"Learn what cash on cash return is, how to calculate it, and why it matters in real estate investing. Includes formula, examples, and pro tips.","og_url":"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/","og_site_name":"Griffin Funding","article_publisher":"https:\/\/www.facebook.com\/griffinfunding","article_author":"https:\/\/www.facebook.com\/griffinfunding","article_published_time":"2025-12-18T22:37:40+00:00","article_modified_time":"2026-03-22T01:01:00+00:00","og_image":[{"width":1999,"height":1333,"url":"https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image3-1.jpg","type":"image\/jpeg"}],"author":"Bill Lyons","twitter_card":"summary_large_image","twitter_creator":"@https:\/\/x.com\/griffinfunding","twitter_site":"@griffinfunding","twitter_misc":{"Written by":"Bill Lyons","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/#article","isPartOf":{"@id":"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/"},"author":{"name":"Bill Lyons","@id":"https:\/\/griffinfunding.com\/#\/schema\/person\/83571cd7f738a7f95cae1a44ad0b7ef1"},"headline":"Cash on Cash Return in Real Estate: Definition, Formula, &#038; Examples","datePublished":"2025-12-18T22:37:40+00:00","dateModified":"2026-03-22T01:01:00+00:00","mainEntityOfPage":{"@id":"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/"},"wordCount":1136,"publisher":{"@id":"https:\/\/griffinfunding.com\/#organization"},"image":{"@id":"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/#primaryimage"},"thumbnailUrl":"https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image3-1.jpg","articleSection":["Mortgage"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/","url":"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/","name":"Cash on Cash Return in Real Estate: Definition & Formula | Griffin Funding","isPartOf":{"@id":"https:\/\/griffinfunding.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/#primaryimage"},"image":{"@id":"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/#primaryimage"},"thumbnailUrl":"https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image3-1.jpg","datePublished":"2025-12-18T22:37:40+00:00","dateModified":"2026-03-22T01:01:00+00:00","description":"Learn what cash on cash return is, how to calculate it, and why it matters in real estate investing. Includes formula, examples, and pro tips.","breadcrumb":{"@id":"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/"]}],"about":{"@id":"https:\/\/griffinfunding.com\/#organization"}},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/#primaryimage","url":"https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image3-1.jpg","contentUrl":"https:\/\/griffinfunding.com\/wp-content\/uploads\/2025\/12\/image3-1.jpg","width":1999,"height":1333,"caption":"Bags of money and a small model home on opposite sides of a balance scale."},{"@type":"BreadcrumbList","@id":"https:\/\/griffinfunding.com\/blog\/mortgage\/cash-on-cash-return-in-real-estate\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/griffinfunding.com\/"},{"@type":"ListItem","position":2,"name":"Mortgage","item":"https:\/\/griffinfunding.com\/blog\/category\/mortgage\/"},{"@type":"ListItem","position":3,"name":"Cash on Cash Return in Real Estate: Definition, Formula, &#038; Examples"}]},{"@type":"WebSite","@id":"https:\/\/griffinfunding.com\/#website","url":"https:\/\/griffinfunding.com\/","name":"Griffin Funding","description":"Mortgages &amp; Home Loan Lenders","publisher":{"@id":"https:\/\/griffinfunding.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/griffinfunding.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/griffinfunding.com\/#organization","name":"Griffin Funding","url":"https:\/\/griffinfunding.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/griffinfunding.com\/#\/schema\/logo\/image\/","url":"https:\/\/griffinfunding.com\/wp-content\/uploads\/2020\/09\/griffinteamlogo-42.jpg","contentUrl":"https:\/\/griffinfunding.com\/wp-content\/uploads\/2020\/09\/griffinteamlogo-42.jpg","width":500,"height":500,"caption":"Griffin Funding"},"image":{"@id":"https:\/\/griffinfunding.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/griffinfunding","https:\/\/x.com\/griffinfunding","https:\/\/www.linkedin.com\/company\/griffin-funding","https:\/\/www.youtube.com\/@griffinfunding","https:\/\/www.instagram.com\/griffin_funding","https:\/\/www.bbb.org\/us\/ca\/san-diego\/profile\/mortgage-lenders\/griffin-funding-1126-172009171","https:\/\/www.zillow.com\/lender-profile\/griffinfunding\/","https:\/\/www.experience.com\/reviews\/company\/griffin-funding-1426"],"description":"Griffin Funding, founded in 2013, is a nationwide direct-to-consumer mortgage lender that specializes in bank statement loans for the self-employed, DSCR loans for real estate investors, VA loans for veterans and active-duty military, and home equity loans for homeowners. Griffin Funding is dedicated to delivering 5-star service, a fully-digital easy-to-use experience, and financial expertise.","email":"info@griffinfunding.com","telephone":"8005275910","legalName":"Griffin Funding, Inc.","foundingDate":"2013-09-17","duns":"07-979-5037","leiCode":"5493002WVA17MT4UFH84","naics":"522292","numberOfEmployees":{"@type":"QuantitativeValue","minValue":"51","maxValue":"200"}},{"@type":"Person","@id":"https:\/\/griffinfunding.com\/#\/schema\/person\/83571cd7f738a7f95cae1a44ad0b7ef1","name":"Bill Lyons","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c0b679e4960454cca8759c2cccd0b4dcf2acd3f5bb2ef255efd806cf23263763?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c0b679e4960454cca8759c2cccd0b4dcf2acd3f5bb2ef255efd806cf23263763?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c0b679e4960454cca8759c2cccd0b4dcf2acd3f5bb2ef255efd806cf23263763?s=96&d=mm&r=g","caption":"Bill Lyons"},"description":"Bill Lyons is the Founder, CEO &amp; President of Griffin Funding. Founded in 2013, Griffin Funding is a national boutique mortgage lender focusing on delivering 5-star service to its clients. Mr. Lyons has 25 years of experience in the mortgage business. Lyons is seen as an industry leader and expert in real estate finance. Lyons has been featured in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to keep up with important changes in the industry to deliver the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc. 5000 fastest-growing companies list five times in its 12 years in business. Follow his updates on LinkedIn.","sameAs":["https:\/\/griffinfunding.com\/our-team\/bill-lyons\/","https:\/\/www.facebook.com\/griffinfunding","https:\/\/www.linkedin.com\/in\/lyons\/","https:\/\/x.com\/https:\/\/x.com\/griffinfunding","https:\/\/www.youtube.com\/@Griffinfunding"],"url":"https:\/\/griffinfunding.com\/blog\/author\/griffinfunding\/"}]}},"_links":{"self":[{"href":"https:\/\/griffinfunding.com\/wp-json\/wp\/v2\/posts\/11372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/griffinfunding.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/griffinfunding.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/griffinfunding.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/griffinfunding.com\/wp-json\/wp\/v2\/comments?post=11372"}],"version-history":[{"count":0,"href":"https:\/\/griffinfunding.com\/wp-json\/wp\/v2\/posts\/11372\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/griffinfunding.com\/wp-json\/wp\/v2\/media\/11374"}],"wp:attachment":[{"href":"https:\/\/griffinfunding.com\/wp-json\/wp\/v2\/media?parent=11372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/griffinfunding.com\/wp-json\/wp\/v2\/categories?post=11372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/griffinfunding.com\/wp-json\/wp\/v2\/tags?post=11372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}