Investment Property Calculator



 
 

Real Estate Investment Property Calculator

This real estate calculator makes the number crunching easy on your investment property. It will help you sort a good deal from bad by providing the key operating ratios including: DSCR (Debt Service Coverage Ratio), NOI (Net Operating Income), NIM (Net Income Multiplier), CAP (Capitalization Ratio), and more.

It also includes a handy calculator in the help-sidebar for adding up numbers as you input the necessary data. Just click the "show calc" button to make it appear.

Alternatively, if you are looking for help with real estate mortgage calculations or payment analysis please see our complete suite of mortgage calculators here. Finally, if these calculators are helpful then a "like" or +1 is always appreciated. Thanks for your support!

Investment Property Information Help & Instruct
Purchase Price: To receive help and/or instructions on any given line item, click inside the adjacent entry field.


Down Payment: %
Loan Term (Years):
Interest Rate (%):
Payment Type (Select One):
P & I Payment ($):
Closing Costs ($):
Gross Scheduled Income (GSI):
Vacancy Rate (%):
Number of Units:
Other Income (laundry, late fees, etc.):
Capitalization Rate Required (Optional):
Annual Operating Expenses Help & Instruct
Accounting ($): To receive help and/or instructions on any given line item, click inside the adjacent entry field.


Admin/Legal/Bank Charges ($):
Advertising ($):
Electricity ($):
Elevator ($):
Gas ($):
Landscaping ($):
Legal ($):
Maintenance & Repair ($):
Payroll Taxes ($):
Permits & Licenses ($):
Pest Control ($):
Pool ($): To recieve help and/or instructions on any given line item, click inside the adjacent entry field.


Property Insurance ($): %
Property Management ($): %
Real Estate Taxes ($): %
Security ($):
Supplies ($):
Telephone ($):
Tenant buyout ($):
Trash ($):
Water ($):
Other ($):
Other ($):
Income Statement & Cash Flow Explanations
Gross Scheduled Income (GSI): For an explantion of any result, click in the adjacent result field.


Less Vacancy:
Total Actual Annual Income:
Other Income:
Gross Operating Income (GOI):
Total Operating Expenses:
Net Operating Income (NOI):
Annual Debt Service (Mortgage Payments):
Before Tax Cash Flows:
Key Operating Ratios Explanations
Capitalization Rate (CAP): For an explantion of any result, click in the adjacent result field.


Cash on Cash (COC):
Gross Rent Multiplier (GRM):
Net Income Multiplier (NIM):
Debt Coverage Ratio (DCR):
Expense Ratio (ER) per Unit :
Price Per Unit:
Property Value Based on Required CAP Rate (if entered):

Growing Your Money Through Real Estate Investing

When you start acquiring properties for investment purposes, your ultimate aim is to earn enough profit and grow your money in the future. If you sincerely desire to join the real estate field, you need to understand the basics of the game. Your objective is to buy properties, earn income from your properties and avoid losses by learning how to differentiate good and bad properties so that you can grow your investment. This is not an easy game. If you are successful, you will not be far from being rich. But if you make mistake, you can also end up being broke.

How Do You Make Money From Investing In Real Estate

There are several ways to earn money from real estate investing. The real estate property investment calculator will help you determine how much you will earn for your investments.

  • Real estate investments generate income. Some people acquire properties such as buildings, commercial complex or houses for the purpose of renting it out. Real properties that can generate a good source of income are warehouse units, apartments, office buildings, rental houses and more.
  • Real estate value appreciates fast. There are few factors that could possibly affect the valuation of your real estate property. If the properties around your area is scarce or the area becomes busy due to developments, then you can expect for your real property value to soar high. It is very important that you do a careful research or know the development plans in your city before investing.
  • Make money from business operations. Engage in special services and business services that could generate additional income, like setting up a vending machine in your rented property, offer laundry or food catering services in apartments or operate a car wash business, etc.

How To Buy Real Estate Properties

There are several options to real property investments. You can take loan against your existing property or take a regular mortgage loan. For those who are already expert in the real estate field, they take loan from hard moneylenders. Hard money loan is easier to take because it does not look at the credit worthiness of the debtor. Instead they will look up at the value of the property. But beware, because hard money loans are very expensive. If you are a beginner, you should be careful because most of the time, the hard moneylender ends up owning the property. Calculate how much you could possibly earn from your investment using the investment property calculator, to check if it’s worth taking a hard money loan with a pricey interest.

How Do I Start

  • Start saving for the down payment. Remember that any money you can save now can help you start building up funds for your future investments. Review your budget and check which expense you can cut to increase your savings.
  • Set a goal and start with small investments. It is important that you set a goal for yourself on when you should be able to buy your first investment. When you are new to the market, you should also start buying investments with lower risks. The lesser risk you have, the lesser your chances of incurring loss if you make mistake.
  • Get some help. There are lots of self-help books available in the market nowadays. But it is also important that you consult the experts in this field. Learn from the mistakes of those who are ahead of you.

Ready To Invest

Investing in real property is not for everyone. It is also not limited to rich people. However, you need to be stable with your finances if you want to enter this game. It is not a quick process of getting rich and it can take decades before you see results. Educate yourself. Read books and ask for expert’s help so you will fully understand the game of real estate investing.

Real Estate Property Investment Calculator Terms And Definitions

  • Purchase Price – The price of the real property
  • Down Payment – The initial amount you need to pay purchases made through debt
  • Loan Term – The period you need to pay the loan
  • Interest Rate – The percentage interest rate of the loan
  • Vacancy Rate – The probability rate of your property to be idle
  • Gross Scheduled Income – The income generated from possible rent collections
  • Other Income – All the other income generated from the property
  • Property Management Expense – The total expenses for maintaining the property
  • Capitalization Rate – The income of the property divided by the purchase price
  • Cash on Cash – The return on investment rate
  • Gross Rent Multiplier – Purchase price divided by the gross scheduled income
  • Net Income Multiplier – Purchase price divided by the net operating income
  • Debt Coverage Ratio – Net operating income divided by net annual service
  • Expense Ratio – Total operating expense divided by gross operating income

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