Financial Formulas
 
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: RussCCIM Commercial Real Estate and Biz Ops Broker : Southwest Florida

Here are a few financial formulas that I have found very useful and use on a daily basis:

GROSS RENT MULTIPLIER
Market Value Gross / Schedule Rent
CAP RATE Net Operating Income (NOI) / Market Value
MARKET VALUE NOI / Cap Rate
OPERATING PROFIT NOI / Total Income
DEBT COVERAGE RATIO NOI / Annual Debt Service
CASH FLOW BEFORE TAX NOI - Debt Service
CASH ON CASH RETURN Cash Flow Before Tax / Down Payment
TOTAL YIELD Cash Flow Before Tax+ Principle Payments
RETURN ON EQUITY Total Yield / Down Payment

 


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