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Income Property Evaluation Calculator
 


Selecting the link below will launch a Microsoft Excel spreadsheet configured to help you calculate your cash flow before taxes (CFBT), Return on Equity (ROE) and cap rate for a given property - simply change the numbers shown in red text. If you don't have Excel available, the table below shows you the calculations to make manually.

Microsoft Excel Income Property Evaluation calculator

If you are making your calculations manually:
Original purchase price:
 
  
Gross rental income:
 
  
Vacancy rate
 
  (default: 7%)
Expenses    
Net Operating Income

=

 (Gross rental income) - (Vacancy rate) - (Expenses)
     
Down payment:
 
  (default: 25%)
Loan

=

 (Original purchase price) - (Down payment)
Loan interest rate
 
  
Loan amortization term
 
  (expressed in years)
Loan payment =  PMT( (Loan interest rate) / 12, (Loan amortization term)x12, Loan) x 12  -- (PMT is a built-in Excel function)
Cash flow before taxes = (Net Operating Income) - (Loan payment)
Return on equity = (CFBT) / (Down payment)
Capitalization rate = (NOI) / (Original purchase price)
     
In addition to the Property Evaluation Calculator shown here, there are also a number of other metrics - and calculators for those - with which you can evaluate a purchase. Calculators for the set of metrics shown below can all be downloaded free in one package from RealData.com:
 
  • Rates of Return
  • Depreciation
  • Payment grid
  • Refinancing calculator
  • Capitalization rate calculator
  • Gross income and net income multiplier
  • Loan to value ratio
  • Amortization schedule

 
  • Future value
  • Mortgage qualifier
  • Loan comparison
  • Quick loan payment calculator
  • Maximum loan supported by a property's income
  • Debt coverage ratio
  • Break even ratio

 

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