After-Tax Cash Flow
After-tax cash flow measures property cash after debt service, capital items, and investor-specific taxes under a stated timing convention.
Property return measures covering annual equity cash flow, compound equity yield, after-tax outcomes, and capital recovery.
Cash flow and equity yield analysis follows money after property operations and financing. Cash-on-Cash Return measures one year’s pre-tax equity cash flow relative to cash invested. Equity Yield Rate incorporates the complete equity cash-flow series and net sale proceeds.
After-Tax Cash Flow and After-Tax Equity Yield add stated tax assumptions. Those results are investor- and jurisdiction-specific and should not be compared with pre-tax measures without reconciliation.
Financial Management Rate of Return (FMRR) adds explicit assumptions about funding future deficits and reinvesting interim receipts. It is a specialized supplement to IRR and net present value, not a replacement for reviewing the underlying cash flows.
Recapture Rate has a narrower appraisal meaning. It represents recovery of capital invested in wasting improvements under specified capitalization methods; it is not an equity yield, accounting depreciation expense, or tax depreciation-recapture rate.
| Stage | Main calculation | What it shows |
|---|---|---|
| Property operations | Rent less vacancy and operating expenses | Net operating income before financing |
| Annual equity cash flow | NOI less debt service and stated equity-level cash items | Cash available to or required from equity |
| Cash-on-cash return | Annual pre-tax equity cash flow divided by cash invested | One-period cash yield |
| Net equity reversion | Sale price less selling costs and loan payoff | Equity proceeds at exit |
| Equity yield rate | IRR of all equity contributions and receipts | Compound holding-period return |
These measures are educational analytical tools, not guaranteed returns or individualized investment, appraisal, tax, accounting, legal, or lending advice.
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After-tax cash flow measures property cash after debt service, capital items, and investor-specific taxes under a stated timing convention.
After-tax equity yield is the annualized return implied by an investor's equity contributions and after-tax property cash receipts over a holding period.
Cash-on-cash return compares annual pre-tax cash flow after debt service with the cash equity invested in a property.
Financial management rate of return is a property return measure that applies explicit safe-rate, reinvestment, and future-funding assumptions.
Recapture rate is an appraisal allowance for recovering capital invested in wasting improvements over their remaining economic life.