Glossary · Letting and yield

Return on equity

The whole return on the equity put in during one year.

Besides the running surplus it also counts the repayment and the appreciation. That is why it is usually higher than the pure cash-on-cash return. Repayment counts as building up assets, not as running cash in your pocket.

Where it appears in the report

Return on equity appears in the report in the Yield chapter, together with cash-on-cash return. Look at the sample report

Common questions about it

Why is return on equity higher than cash-on-cash return?

Because it also counts the repayment and the appreciation, not just the running surplus.

Related terms in the glossary

Last updated: 2026-09-07