Terms — Learn the Metrics
Every term Realyze uses, in plain English — formulas, examples, and why each one matters.
Cash-on-Cash Return
Annual pre-tax cash flow as a percentage of the cash you actually invested.
Formula
CoC = Annual Pre-Tax Cash Flow ÷ Total Cash Invested × 100Explanation
Unlike cap rate, cash-on-cash accounts for your financing. It measures the return on the dollars you actually put in — your down payment, closing costs, points, and any rehab equity. This is the number that tells you how hard your money is working.
Example
You invest $60,000 cash into a deal that produces $6,000/yr in cash flow after debt service. Your cash-on-cash return is 10%.
Why It Matters
A deal can have a great cap rate but terrible cash-on-cash if the financing terms are poor, or vice versa. This metric captures the investor's actual experience.
Strategy explainers
Every model has a deeper walkthrough — when to use it, what steps it involves, what to watch out for.