Calculating...
Save your property & unlock more insights
Create a free Property Tracker account to create this report, track your properties, and see deeper ROI numbers.
How we calculated
Assumptions used.
- Vacancy
- %
- Maintenance
- %
- Property management
- %
- Annual taxes
- % of price
- Annual insurance
- $
- Closing costs
- % of price
- Projected inflation
- %
- First-year appreciation
- %
- Loan term
- years
Formulas
Definitions from the Property Tracker glossary.
- Rent-to-Value Ratio™ (RV Ratio™) — Monthly Rent ÷ Purchase Price × 100.
- Annual Gross Rent Multiplier — Purchase Price ÷ Gross Annual Rent.
- Debt Coverage Ratio — NOI ÷ Total Mortgage Payment.
- Capitalization Rate — NOI ÷ Purchase Price × 100.
- Cash on Cash Return — Annual Cash Flow ÷ Initial Cash Invested × 100.
- ROI — (Cash Flow + Principal Reduction + Appreciation) ÷ Initial Cash × 100.
- ROI with IIDD — Gross Equity Income ÷ Initial Cash × 100 (GEI includes IIDD).
- Inflation Induced Debt Destruction® (IIDD) — Projected Inflation Rate × Total Loan Amount.
- Gross Equity Income — Cash Flow + Principal Reduction + Appreciation + IIDD.
- First-Year Appreciation — Purchase Price × appreciation %.
- Cash Flow — NOI − Mortgage Payments.
- NOI — Operating Income − Operating Expenses (effective rent × 0.82 − taxes − insurance).
- Principal Reduction — Mortgage Payment − Interest Portion (first 12 months summed).