{"id":14917,"date":"2026-08-17T06:19:31","date_gmt":"2026-08-17T10:19:31","guid":{"rendered":"https:\/\/www.sage.com\/en-ca\/blog\/?p=14917"},"modified":"2026-08-17T06:22:24","modified_gmt":"2026-08-17T10:22:24","slug":"cash-on-cash-return","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ca\/blog\/cash-on-cash-return\/","title":{"rendered":"Cash on cash return: Definition, formula, and example"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tCash on cash return: Definition, formula, and example\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tHow much cash flow is your property investment really generating? Learn the cash on cash return formula, see an example, and understand the result.\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2026-08-17T06:19:31-04:00\">August 17, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Cash on cash return: Definition, formula, and example\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-ca\/blog\/cash-on-cash-return\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-ca\/blog\/author\/lauraslingo\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2026\/03\/laura-slingo-headshot-350x350.jpg\" class=\"entry-author__image\" alt=\"Laura Slingo\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2026\/03\/laura-slingo-headshot-350x350.jpg 350w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2026\/03\/laura-slingo-headshot.jpg 400w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Laura Slingo<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re a property investor\u2014or an accountant advising property investor clients\u2014you\u2019ll probably already know terms such as Return On Investment (ROI), capitalization rate, and cash flow. Cash on cash return is another useful measure to have in your toolkit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It shows how much annual pre-tax <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/why-you-should-be-doing-cash-flow-analysis\/\">cash flow<\/a> a property generates compared with the cash you\u2019ve invested. That makes it especially helpful when a purchase is financed, as it focuses on your own cash contribution rather than the property\u2019s full value.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, what does cash on cash return mean in practice? This guide explains the formula, shows you how to calculate it, and explores what the result can\u2014and can\u2019t\u2014tell you about a property investment.<\/p>\n\n\n<section id=\"key-takeaways\" class=\"wp-block-sage-key-takeaways\"><div class=\"sage-key-takeaways__inner\"><h2 class=\"wp-block-heading has-h-3-font-size\">Key takeaways<\/h2>\n<ul class=\"wp-block-list\">\n<li>Cash on cash return shows how much annual pre-tax cash flow a property generates compared with the cash you\u2019ve invested.<\/li>\n\n\n\n<li>To calculate it, divide annual pre-tax cash flow by total cash invested, then multiply by 100.<\/li>\n\n\n\n<li>Make sure your annual cash flow accounts for operating costs, vacancy, and current-year principal and interest payments.<\/li>\n\n\n\n<li>Cash on cash return includes financing costs, unlike cap rate, but usually looks at a single year rather than the investment\u2019s full lifetime.<\/li>\n\n\n\n<li>There\u2019s no single \u201cgood\u201d cash on cash return. Look at the property\u2019s location, financing, risks, expected costs, and your investment goals before judging the result.<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n<h3 id=\"h-here-s-what-we-cover\" class=\"wp-block-heading\">Here&#8217;s what we cover:<\/h3>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-is-cash-on-cash-return-in-real-estate\" data-level=\"2\">What is cash on cash return in real estate?<\/a><\/li><li><a href=\"#h-how-to-calculate-cash-on-cash-return\" data-level=\"2\">How to calculate cash on cash return<\/a><\/li><li><a href=\"#h-key-considerations-for-canadian-commercial-investors\" data-level=\"2\">Key considerations for Canadian commercial investors<\/a><\/li><li><a href=\"#h-cash-on-cash-return-calculation-example\" data-level=\"2\">Cash on cash return calculation example<\/a><\/li><li><a href=\"#h-what-is-a-good-cash-on-cash-return\" data-level=\"2\">What is a good cash on cash return?<\/a><\/li><li><a href=\"#h-cash-on-cash-return-versus-other-real-estate-metrics\" data-level=\"2\">Cash on cash return versus other real estate metrics<\/a><\/li><li><a href=\"#h-when-should-you-use-cash-on-cash-return\" data-level=\"2\">When should you use cash on cash return?<\/a><\/li><li><a href=\"#h-is-cash-on-cash-return-the-same-as-cash-basis-accounting\" data-level=\"2\">Is cash on cash return the same as cash-basis accounting?<\/a><\/li><li><a href=\"#h-common-cash-on-cash-return-mistakes-to-avoid\" data-level=\"2\">Common cash on cash return mistakes to avoid<\/a><\/li><li><a href=\"#h-final-thoughts\" data-level=\"2\">Final thoughts<\/a><\/li><li><a href=\"#h-frequently-asked-questions-about-cash-on-cash-return\" data-level=\"2\">Frequently asked questions about cash on cash return<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 id=\"h-what-is-cash-on-cash-return-in-real-estate\" class=\"wp-block-heading\">What is cash on cash return in real estate?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Cash on cash return measures the annual pre-tax cash flow from a property against the cash you\u2019ve invested. It\u2019s also sometimes called cash yield.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s especially useful when you\u2019ve used financing to buy a property. Instead of measuring the return against the full purchase price, cash on cash return focuses on the money you\u2019ve put into the investment\u2014such as the down payment, closing costs, and renovations paid for in cash.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The calculation takes account of the property\u2019s income, operating costs, and debt payments for the year. But it doesn\u2019t include everything. Property appreciation, the equity you build by repaying loan principal, income taxes, and any profit from a future sale sit outside the calculation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That\u2019s why cash on cash return is a useful way to understand the cash a property is generating now\u2014but you shouldn\u2019t use it on its own to judge the investment\u2019s overall performance.<\/p>\n\n\n\n<h2 id=\"h-how-to-calculate-cash-on-cash-return\" class=\"wp-block-heading\">How to calculate cash on cash return<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To calculate cash on cash return, divide the property\u2019s annual pre-tax cash flow by the total cash invested, then multiply by 100.<\/p>\n\n\n\n<div class=\"wp-block-math\"><math display=\"block\"><semantics><mrow><mtext>Cash&nbsp;on&nbsp;cash&nbsp;return&nbsp;(%)<\/mtext><mo>=<\/mo><mrow><mo fence=\"true\" form=\"prefix\">(<\/mo><mfrac><mtext>Annual&nbsp;pre-tax&nbsp;cash&nbsp;flow<\/mtext><mtext>Total&nbsp;cash&nbsp;invested<\/mtext><\/mfrac><mo fence=\"true\" form=\"postfix\">)<\/mo><\/mrow><mo>\u00d7<\/mo><mn>100<\/mn><\/mrow><annotation encoding=\"application\/x-tex\">\\text{Cash on cash return (\\%)} = \\left(\\frac{\\text{Annual pre-tax cash flow}}{\\text{Total cash invested}}\\right) \\times 100<\/annotation><\/semantics><\/math><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019ll need two figures to use the cash on cash return formula: annual pre-tax cash flow and total cash invested.<\/p>\n\n\n\n<h3 id=\"h-annual-pre-tax-cash-flow\" class=\"wp-block-heading\">Annual pre-tax cash flow<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Annual pre-tax cash flow is the cash a property generates over the year after you\u2019ve paid its operating costs and debt payments, but before income taxes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can calculate it using this formula:<\/p>\n\n\n\n<div class=\"wp-block-math\"><math display=\"block\"><semantics><mrow><mtext>Annual&nbsp;pre-tax&nbsp;cash&nbsp;flow<\/mtext><mo>=<\/mo><mtext>Rental&nbsp;and&nbsp;other&nbsp;property&nbsp;income<\/mtext><mo>\u2212<\/mo><mtext>Vacancy&nbsp;and&nbsp;credit&nbsp;losses<\/mtext><mo>\u2212<\/mo><mtext>Operating&nbsp;expenses<\/mtext><mo>\u2212<\/mo><mtext>Annual&nbsp;debt&nbsp;payments<\/mtext><\/mrow><annotation encoding=\"application\/x-tex\">\\text{Annual pre-tax cash flow} = \\text{Rental and other property income} &#8211; \\text{Vacancy and credit losses} &#8211; \\text{Operating expenses} &#8211; \\text{Annual debt payments}<\/annotation><\/semantics><\/math><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the property, these deductions could include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Property taxes.<\/li>\n\n\n\n<li>Insurance.<\/li>\n\n\n\n<li>Maintenance and repairs.<\/li>\n\n\n\n<li>Property management fees.<\/li>\n\n\n\n<li>Utilities and other costs paid by the landlord.<\/li>\n\n\n\n<li>Vacancy and credit-loss allowances.<\/li>\n\n\n\n<li>Principal and interest payments due during the year.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Make sure you include both principal and interest in your annual debt payments. Deducting only the loan interest would overstate the cash you actually receive unless the loan is interest-only.<\/p>\n\n\n\n<h3 id=\"h-total-cash-invested\" class=\"wp-block-heading\">Total cash invested<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Total cash invested is the money you\u2019ve paid to acquire the property and get it ready to generate income. It\u2019s not the same as the property\u2019s full purchase price when financing is involved.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your total cash investment could include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Down payment.<\/li>\n\n\n\n<li>Land transfer tax and other closing costs.<\/li>\n\n\n\n<li>Legal, inspection, and appraisal fees.<\/li>\n\n\n\n<li>Title insurance.<\/li>\n\n\n\n<li>Renovation or tenant improvement costs.<\/li>\n\n\n\n<li>Due diligence costs.<\/li>\n\n\n\n<li>Broker or sourcing fees paid by the investor.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Be consistent about which costs you include. Leaving out an upfront expense will make the cash on cash return look higher than the return you\u2019re actually earning on your investment.<\/p>\n\n\n\n<h2 id=\"h-key-considerations-for-canadian-commercial-investors\" class=\"wp-block-heading\">Key considerations for Canadian commercial investors<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Cash on cash return is only as reliable as the numbers behind it. If you\u2019re assessing a Canadian commercial property, use assumptions that reflect the specific lease, financing agreement, and local market.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Lease structure:<\/strong> a triple net lease may require the tenant to pay some or all property taxes, insurance, and maintenance costs. Check the lease carefully so you know which costs still fall to the landlord.<\/li>\n\n\n\n<li><strong>Property taxes:<\/strong> commercial property assessments and tax rates vary by municipality. Use the costs for the property you\u2019re assessing rather than relying on a general estimate.<\/li>\n\n\n\n<li><strong>Vacancy and credit losses:<\/strong> consider the local leasing market, property type, tenant quality, and how long it could take to find a new tenant. Commercial spaces can remain vacant for longer between leases, but the risk will vary by property and location.<\/li>\n\n\n\n<li><strong>Financing: <\/strong>if the loan has a variable rate or is approaching renewal, test how different interest rates and debt payments could change the return.<\/li>\n\n\n\n<li><strong>Tax treatment:<\/strong> <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/businesses\/topics\/rental-income\/capital-cost-allowance-rental-property.html\" target=\"_blank\" rel=\"noreferrer noopener\">Capital Cost Allowance (CCA)<\/a> may allow you to deduct the cost of eligible depreciable rental property over several years. In certain circumstances, the Canada Revenue Agency\u2019s (CRA) <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/businesses\/topics\/sole-proprietorships-partnerships\/report-business-income-expenses\/claiming-capital-cost-allowance\/replacement-property.html\" target=\"_blank\" rel=\"noreferrer noopener\">replacement-property rules<\/a> may also let you defer a capital gain or the recapture of CCA. These rules affect taxable income rather than the standard pre-tax cash on cash return calculation, so consider getting professional advice for the specific investment.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-cash-on-cash-return-calculation-example\" class=\"wp-block-heading\">Cash on cash return calculation example<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s see how the formula works using a simplified Canadian commercial property example.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose you invest in an office property with the following purchase and setup costs:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Purchase price: $650,000.<\/li>\n\n\n\n<li>Commercial loan at 70% loan-to-value: $455,000.<\/li>\n\n\n\n<li>Down payment of 30%: $195,000.<\/li>\n\n\n\n<li>Land transfer tax and other closing costs: $13,000.<\/li>\n\n\n\n<li>Legal, appraisal, and inspection fees: $5,500.<\/li>\n\n\n\n<li>Tenant improvements: $18,000.<\/li>\n\n\n\n<li>Due diligence costs: $2,500.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Your total cash invested is:<\/p>\n\n\n\n<div class=\"wp-block-math\"><math display=\"block\"><semantics><mrow><mi>$<\/mi><mn>195,000<\/mn><mo>+<\/mo><mi>$<\/mi><mn>13,000<\/mn><mo>+<\/mo><mi>$<\/mi><mn>5,500<\/mn><mo>+<\/mo><mi>$<\/mi><mn>18,000<\/mn><mo>+<\/mo><mi>$<\/mi><mn>2,500<\/mn><mo>=<\/mo><mi>$<\/mi><mn>234,000<\/mn><\/mrow><annotation encoding=\"application\/x-tex\">\\$195{,}000 + \\$13{,}000 + \\$5{,}500 + \\$18{,}000 + \\$2{,}500 = \\$234{,}000<\/annotation><\/semantics><\/math><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Now assume the property has the following annual income and cash outflows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Annual rental income: $52,000.<\/li>\n\n\n\n<li>Vacancy allowance of one month: $4,333.<\/li>\n\n\n\n<li>Property management fee of 2% of annual rent: $1,040.<\/li>\n\n\n\n<li>Annual interest-only debt payment at 5.5% on $455,000: $25,025.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Your annual pre-tax cash flow is:<\/p>\n\n\n\n<div class=\"wp-block-math\"><math display=\"block\"><semantics><mrow><mi>$<\/mi><mn>52,000<\/mn><mo>\u2212<\/mo><mi>$<\/mi><mn>4,333<\/mn><mo>\u2212<\/mo><mi>$<\/mi><mn>1,040<\/mn><mo>\u2212<\/mo><mi>$<\/mi><mn>25,025<\/mn><mo>=<\/mo><mi>$<\/mi><mn>21,602<\/mn><\/mrow><annotation encoding=\"application\/x-tex\">\\$52{,}000 &#8211; \\$4{,}333 &#8211; \\$1{,}040 &#8211; \\$25{,}025 = \\$21{,}602<\/annotation><\/semantics><\/math><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">You can then calculate the cash on cash return:<\/p>\n\n\n\n<div class=\"wp-block-math\"><math display=\"block\"><semantics><mrow><mrow><mo fence=\"true\" form=\"prefix\">(<\/mo><mfrac><mrow><mi>$<\/mi><mn>21,602<\/mn><\/mrow><mrow><mi>$<\/mi><mn>234,000<\/mn><\/mrow><\/mfrac><mo fence=\"true\" form=\"postfix\">)<\/mo><\/mrow><mo>\u00d7<\/mo><mn>100<\/mn><mo>=<\/mo><mn>9.23<\/mn><mi>%<\/mi><\/mrow><annotation encoding=\"application\/x-tex\">\\left(\\frac{\\$21{,}602}{\\$234{,}000}\\right) \\times 100 = 9.23\\%<\/annotation><\/semantics><\/math><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">A 9.23% cash on cash return means the property generated annual pre-tax cash flow equal to 9.23% of the cash invested.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whether that\u2019s a good result depends on factors such as the property\u2019s location, tenant stability, financing terms, expected costs, and your investment goals. Don\u2019t judge the investment on this figure alone.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This simplified example assumes interest-only financing. If the loan also required principal repayments during the year, you\u2019d need to deduct the full principal and interest payments when calculating annual pre-tax cash flow.<\/p>\n\n\n\n<h2 id=\"h-what-is-a-good-cash-on-cash-return\" class=\"wp-block-heading\">What is a good cash on cash return?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s no single cash on cash return that counts as \u201cgood\u201d for every real estate investment. The right target depends on the property, market, financing, risk, and your investment goals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019ll often see 8\u201312% used as a rough industry benchmark. But it isn\u2019t a Canadian standard, and it shouldn\u2019t be used as a pass-or-fail test.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A lower return may still be attractive for a well-located property with stable tenants and predictable costs. A much higher projected return could point to greater vacancy, financing, maintenance, or market risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before deciding whether a cash on cash return is good, consider:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Local property and leasing conditions.<\/li>\n\n\n\n<li>The reliability of the income and expense forecasts.<\/li>\n\n\n\n<li>Interest rates and loan terms.<\/li>\n\n\n\n<li>Tenant quality and lease length.<\/li>\n\n\n\n<li>The property\u2019s age and expected repair or improvement costs.<\/li>\n\n\n\n<li>Your risk tolerance and investment goals.<\/li>\n\n\n\n<li>How the result compares with other properties and investment options.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s also worth testing different scenarios. Changing assumptions for rent, vacancy, expenses, or interest rates can show how quickly the projected return could rise or fall. This gives you a more useful view of risk than relying on a single headline percentage.<\/p>\n\n\n\n<h2 id=\"h-cash-on-cash-return-versus-other-real-estate-metrics\" class=\"wp-block-heading\">Cash on cash return versus other real estate metrics<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Cash on cash return gives you a useful view of annual cash flow, but it doesn\u2019t tell the whole story. Looking at it alongside ROI, capitalization rate, and Internal Rate of Return (IRR) gives you a more complete picture.<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-first-column\"><table class=\"has-fixed-layout\"><thead><tr><th>Metric<\/th><th>What is measures<\/th><th>Financing included?<\/th><th>Most useful for<\/th><\/tr><\/thead><tbody><tr><td><strong>Cash on cash return<\/strong><\/td><td>Annual pre-tax cash flow compared with the cash invested.<\/td><td>Yes.<\/td><td>Understanding current cash yield.<\/td><\/tr><tr><td><strong>ROI<\/strong><\/td><td>Total gain or loss compared with the total investment cost.<\/td><td>Depends on the calculation.<\/td><td>Assessing overall investment performance.<\/td><\/tr><tr><td><strong>Capitalization rate<\/strong><\/td><td>Net operating income compared with the property\u2019s value.<\/td><td>No.<\/td><td>Comparing properties without the effect of financing.<\/td><\/tr><tr><td><strong>IRR<\/strong><\/td><td>The annualised return across the investment period, taking account of when cash flows occur.<\/td><td>Depends on whether levered or unlevered cash flows are used.<\/td><td>Assessing longer-term investments with multiple cash flows.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 id=\"h-cash-on-cash-return-versus-roi\" class=\"wp-block-heading\">Cash on cash return versus ROI<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Cash on cash return usually focuses on one year of pre-tax cash flow and the cash you\u2019ve invested. ROI is broader and can include property appreciation, equity built through principal repayments, and profit or loss when the property is sold.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Use cash on cash return to understand the income your invested cash is generating now. <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/roi-calculator\/\">Use ROI<\/a> when you want to assess the investment\u2019s overall performance.<\/p>\n\n\n\n<h3 id=\"h-cash-on-cash-return-versus-capitalization-rate\" class=\"wp-block-heading\">Cash on cash return versus capitalization rate<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Cash on cash return includes the effect of financing because annual debt payments reduce the cash flow used in the calculation. Capitalization rate\u2014or cap rate\u2014doesn\u2019t include financing. It divides the property\u2019s net operating income by its current value or purchase price.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This makes cap rate useful for comparing properties on a like-for-like basis, while cash on cash return helps you compare how different financing choices affect your own return.<\/p>\n\n\n\n<h3 id=\"h-cash-on-cash-return-versus-irr\" class=\"wp-block-heading\">Cash on cash return versus IRR<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Cash on cash return provides a snapshot of annual cash yield. IRR looks across the full investment period and accounts for the timing of cash flows, including the initial investment, income received, later costs, and potential sale proceeds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">IRR can give you a stronger view of long-term performance, but it relies on forecasts and assumptions. Use it alongside cash on cash return rather than as a replacement for it.<\/p>\n\n\n\n<h2 id=\"h-when-should-you-use-cash-on-cash-return\" class=\"wp-block-heading\">When should you use cash on cash return?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Use cash on cash return when you want to understand how much annual cash flow a property could generate from the money you\u2019ve invested. It\u2019s especially useful for financed rental properties because it accounts for the effect of debt payments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cash on cash return can help you:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Compare the annual cash yield from different property investments.<\/li>\n\n\n\n<li>Assess whether a property could meet your cash flow goals.<\/li>\n\n\n\n<li>Compare different down payments, interest rates, or financing structures.<\/li>\n\n\n\n<li>Track how a property\u2019s cash performance changes from year to year.<\/li>\n\n\n\n<li>Test how changes in rent, vacancy, costs, or debt payments could affect your return.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Make sure you use the same calculation method and time period when comparing properties. Otherwise, the results won\u2019t provide a fair comparison.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cash on cash return is less useful when you need to understand an investment\u2019s complete long-term performance. It doesn\u2019t fully capture property appreciation, the equity built through principal repayments, income taxes, or future sale proceeds. For that, you\u2019ll need to look at <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/key-metrics-cfo-financial-reporting\/\">other metrics<\/a> such as ROI and IRR too.<\/p>\n\n\n\n<h2 id=\"h-is-cash-on-cash-return-the-same-as-cash-basis-accounting\" class=\"wp-block-heading\">Is cash on cash return the same as cash-basis accounting?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Because cash on cash return measures the cash moving into and out of a property, it\u2019s easy to confuse it with cash-basis accounting. But they serve different purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cash on cash return is a property investment metric. It measures annual pre-tax cash flow against the cash you\u2019ve invested. Cash-basis accounting is a method of recording income when it\u2019s received and expenses when they\u2019re paid.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using cash flow to calculate cash on cash return doesn\u2019t determine which accounting method you should use for financial reporting or Canadian tax purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For Canadian rental income, the <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/businesses\/topics\/rental-income\/accounting-methods.html\" target=\"_blank\" rel=\"noreferrer noopener\">CRA\u2019s accounting guidance<\/a> uses the accrual method in its examples. You can use the cash method only if your net rental income or loss would be almost the same under both methods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re unsure which method applies to your property business, speak to an accountant or tax professional.<\/p>\n\n\n\n<h2 id=\"h-common-cash-on-cash-return-mistakes-to-avoid\" class=\"wp-block-heading\">Common cash on cash return mistakes to avoid<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The cash on cash return formula is simple, but small gaps in your assumptions can produce a misleading result. Watch out for these common mistakes.<\/p>\n\n\n\n<h3 id=\"h-leaving-out-costs\" class=\"wp-block-heading\">Leaving out costs<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Include all the cash you\u2019ve spent to acquire and prepare the property, not just the down payment. Closing costs, legal and appraisal fees, due diligence, and initial improvements all increase your total cash investment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019ll also need to include the relevant annual operating costs in your cash flow calculation. Mixing upfront costs with <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/all-about-expenses-selling-general-administrative-sga\/\">ongoing expenses<\/a>\u2014or leaving either out\u2014can distort the result.<\/p>\n\n\n\n<h3 id=\"h-overestimating-rental-income\" class=\"wp-block-heading\">Overestimating rental income<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Don\u2019t assume you\u2019ll collect 100% of the scheduled rent throughout the year. Tenant turnover, non-payment, repairs, and the time needed to find a new tenant can all reduce cash flow.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Use a vacancy and credit-loss assumption based on the property type and local market. A single percentage won\u2019t be right for every property.<\/p>\n\n\n\n<h3 id=\"h-deducting-interest-but-not-principal\" class=\"wp-block-heading\">Deducting interest but not principal<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If a property has an amortizing loan, deduct the full principal and interest payments due during the year. Deducting only the interest will overstate the cash available to you.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exception is an interest-only loan, where no principal payment is due during the period you\u2019re measuring.<\/p>\n\n\n\n<h3 id=\"h-confusing-cash-flow-with-profit\" class=\"wp-block-heading\">Confusing cash flow with profit<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Annual pre-tax cash flow isn\u2019t the same as accounting profit or taxable income. For example, repaying loan principal uses cash but isn\u2019t generally treated as a deductible rental expense. Capital cost allowance may reduce taxable income without requiring a current cash payment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cash on cash return tells you about cash flow\u2014not the property\u2019s complete accounting, tax, or investment performance.<\/p>\n\n\n\n<h2 id=\"h-final-thoughts\" class=\"wp-block-heading\">Final thoughts<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Cash on cash return gives you a clear way to assess the annual cash flow a property generates from the money you\u2019ve invested. It can help you compare opportunities, test different financing options, and see how changes in income or costs could affect your return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But it\u2019s only one part of the picture. Cash on cash return doesn\u2019t fully reflect appreciation, equity growth, income taxes, future capital costs, or the eventual sale of the property. Look at it alongside ROI, cap rate, IRR, and the risks and goals behind the investment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accurate calculations start with reliable, up-to-date financial data. If you manage investments across multiple properties or entities, <a href=\"https:\/\/www.sage.com\/en-ca\/industry\/financial-services\/wealth-and-asset-management\/\">wealth and asset management accounting software<\/a> can bring <a href=\"https:\/\/www.sage.com\/en-ca\/accounting-software\/cash-management\/\">cash management<\/a>, accounting, and reporting data together. Real-time <a href=\"https:\/\/www.sage.com\/en-ca\/sage-business-cloud\/intacct\/product-capabilities\/extended-capabilities\/financial-reporting\/\">reports and customizable dashboards<\/a> can then help you monitor performance across your portfolio and make more informed decisions.<\/p>\n\n\n<section class=\"wp-block-sage-faq\">\n\t\n<h2 id=\"h-frequently-asked-questions-about-cash-on-cash-return\" class=\"wp-block-heading\">Frequently asked questions about cash on cash return<\/h2>\n\t\t\t<div class=\"faq-items\">\n\t\t\t<div class=\"wp-block-sage-faq-item\" id=\"faq-item-abd64dbc\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-can-cash-on-cash-return-be-negative\" class=\"wp-block-heading\">Can cash on cash return be negative?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Yes. A negative cash on cash return means the property\u2019s cash outflows were greater than its cash inflows during the period. Vacancy, unpaid rent, unexpected repairs, rising operating costs, or higher debt payments could all contribute to a negative result.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-f51283c2\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-can-you-calculate-cash-on-cash-return-for-a-property-bought-without-a-loan\" class=\"wp-block-heading\">Can you calculate cash on cash return for a property bought without a loan?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Yes. For an all-cash purchase, divide annual pre-tax cash flow by the total cash paid to acquire and prepare the property. There are no debt payments to deduct, but you should still include operating costs, vacancy, and any other relevant cash outflows.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-bc235efd\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-how-often-should-you-recalculate-cash-on-cash-return\" class=\"wp-block-heading\">How often should you recalculate cash on cash return?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Cash on cash return is usually calculated annually, but it\u2019s worth updating whenever rent, occupancy, operating costs, or financing changes. Reviewing it consistently can help you compare actual performance with your original forecast.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-7a35e3c6\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-do-renovation-costs-affect-cash-on-cash-return\" class=\"wp-block-heading\">Do renovation costs affect cash on cash return?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Yes. Renovations completed before the property starts generating income are usually included in the total cash invested. Later improvements may reduce the cash available during the year, so be clear and consistent about how you account for them when comparing results.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-dd4d46b2\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-how-does-refinancing-affect-cash-on-cash-return\" class=\"wp-block-heading\">How does refinancing affect cash on cash return?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Refinancing can change cash on cash return by altering the property\u2019s annual debt payments or returning some of your invested capital. Because cash-out refinancing can make the denominator less straightforward, clearly state whether you\u2019re measuring the return against the original cash investment or the net cash still invested.<\/p>\n\t\t<\/div>\n\t<\/div>\n\t\t<\/div>\n\t<\/section>\n\n\n\n<section class=\"wp-block-sage-container is-constrained\"><div class=\"sage-container__inner\">\n<p class=\"wp-block-paragraph\"><em>The information in this article is for general guidance only and is not financial, investment, accounting, or tax advice.<\/em><\/p>\n<\/div><\/section>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p class=\"cta-content__title\">Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-8949a954-88b2-43bb-8b8a-77c53eb34350\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/accounting-101\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tAccounting 101\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/cash-flow\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tcash flow\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/data-analysis\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tdata analysis\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/financial-insights\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tfinancial insights\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-14929 post type-post status-publish format-standard has-post-thumbnail hentry category-accountants category-money-matters category-people-leadership tag-accounting-101 tag-bookkeeping tag-business-finances tag-business-management tag-cash-flow tag-cfo tag-data-analysis tag-electronic-payments tag-financial-insights business_type-small-business business_type-medium-business business_type-accountants card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1271694534-1440x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1271694534-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1271694534-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1271694534-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-17T07:00:54-04:00\">August 17, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/outstanding-cheques-bank-reconciliation\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tWhat are outstanding cheques in bank reconciliation?\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tOutstanding cheques can make your bank balance look higher than the cash you actually have available. Learn how to identify and calculate them, reconcile your accounts accurately, and handle stale-dated cheques in Canada.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-7205 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-audit tag-bookkeeping tag-business-finances tag-cash-flow tag-small-business business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/how-to-do-a-bank-reconciliation\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2017\/07\/Parfumarija_SageOne_GL_121114-223-684x384.jpg\" class=\"card-post__image\" alt=\"small business customer looks at financial data in a perfume shop with a vase with yellow fowers\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2017\/07\/Parfumarija_SageOne_GL_121114-223-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2017\/07\/Parfumarija_SageOne_GL_121114-223-768x511.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2017\/07\/Parfumarija_SageOne_GL_121114-223.jpg 999w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-14T09:51:15-04:00\">August 14, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tHow to do a bank reconciliation\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-14862 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-bookkeeping tag-business-finances tag-cash-flow tag-expenses tag-small-business business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/accounts-payable-asset-or-liability\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-808410210-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-808410210-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-808410210-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-808410210-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-14T06:19:20-04:00\">August 14, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tIs accounts payable an asset or a liability?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-14853 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-business-continuity tag-business-finances tag-cash-flow tag-payment-processing tag-small-business business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/net-30-payment-terms\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1271694534-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1271694534-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1271694534-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1271694534-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-13T10:42:18-04:00\">August 13, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">12 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tNet 30 payment terms: What they are and why they matter\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-14816 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-business-finances tag-expenses tag-financial-insights tag-profit-and-loss tag-small-business tag-tax business_type-small-business business_type-medium-business industry-healthcare\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/guide-to-dental-practice-accounting\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1285289807-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1285289807-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1285289807-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1285289807-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-20T06:21:32-04:00\">July 20, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">18 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tDental practice accounting: A complete guide\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>How much cash flow is your property investment really generating? Learn the cash on cash return formula, see an example, and understand the result.<\/p>\n","protected":false},"author":1910,"featured_media":11848,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[7],"tags":[162,271,179,190],"business_type":[3,99,6],"lilypad":[],"context":[],"industry":[127],"persona":[],"imagine_tag":[35,255,67],"coauthors":[528],"class_list":["post-14917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-accounting-101","tag-cash-flow","tag-data-analysis","tag-financial-insights","business_type-small-business","business_type-medium-business","business_type-accountants","industry-financial-services"],"sage_meta":{"region":"en-ca","author_name":"Laura Slingo","featured_image":"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0905.jpg","imagine_tags":{"35":"accounting software","255":"SBC Accounting","67":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Canada English","distributor_original_site_url":"https:\/\/www.sage.com\/en-ca\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/14917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/users\/1910"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/comments?post=14917"}],"version-history":[{"count":2,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/14917\/revisions"}],"predecessor-version":[{"id":14919,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/14917\/revisions\/14919"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media\/11848"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media?parent=14917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/categories?post=14917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/tags?post=14917"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/business_type?post=14917"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/lilypad?post=14917"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/context?post=14917"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/industry?post=14917"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/persona?post=14917"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/imagine_tag?post=14917"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/coauthors?post=14917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}