Cash-on-Cash Return is a financial metric used to evaluate the profitability of an investment, particularly in real estate. It measures the annual pre-tax cash flow generated by an investment relative to the amount of cash invested. This ratio helps investors understand how effectively their cash is working for them. To calculate Cash-on-Cash Return, divide the annual cash flow by the total cash invested, then multiply by 100 to get a percentage. For example, if an investor puts in $100,000 and earns $10,000 in cash flow, the cash-on-cash return would be 10%. This metric is useful for comparing different investment opportunities.