Definition, Meaning & Synonyms

gain-on-sale

noun

/ɡeɪn ɒn seɪl/

Definition

The profit realized from the sale of an asset or investment, particularly when the selling price exceeds the original purchase price.

Examples

When the house was sold, the gain-on-sale was significant, allowing us to reinvest the profits into a new property.
The company reported a large gain-on-sale after selling off its old equipment for a higher price than expected.

Meaning

Gain-on-sale refers to the financial benefit one receives from selling an asset at a price higher than its acquisition cost. This term is often used in the context of investments, real estate transactions, or when selling any asset, indicating a positive return on investment.