Real Estate Formulas
What is the formula to calculate the Gross Rent Multiplier (GRM)?
Property Value / Gross Scheduled Income (GSI)
What is the formula to calculate the Capitalization Rate (Cap Rate)?
Net Operating Income (NOI) / Property Value
What is the formula to calculate the Net Operating Income (NOI)?
Gross Scheduled Income (GSI) - Operating Expenses
What is the formula to calculate the Cash-on-Cash Return?
Cash Flow / Down Payment
What is the formula to calculate the Debt Service Coverage Ratio (DSCR)?
Net Operating Income (NOI) / Debt Service
What is the formula to calculate the Return on Investment (ROI)?
(Cash Flow + Equity) / Total Investment
What is the formula to calculate the Break-Even Ratio?
Operating Expenses / Gross Scheduled Income (GSI)
What is the formula to calculate the Loan-to-Value (LTV) ratio?
Loan Amount / Property Value
What is the formula to calculate the Equity Multiple?
Equity / Total Investment
What is the formula to calculate the Operating Expense Ratio?
Operating Expenses / Gross Operating Income (GOI)