Input data
Purchase Price  
Annual Income  
Annual Expenses  
Down Payment
 
Interest Rate  
Total Mortage Term (years)  
 
Update
 
Income Distribution
    Operating Expenses - $ 0.00
    Mortgage Interest - $ 0.00
    Principal Payment - $ 0.00
    Annual Appreciation - $ 0.00
    Cash Flow - $ 0.00
Financial Ratios
What is your desired rate of return?*
Your Analysis
       
 
Gross Rent Multiplier (GRM)
Gross Rent Multiplier (GRM)
Indicates how many times the gross income represents the property acquisition cost. (Value of the Property / Gross Income.
 		  0.00          
Net Rent Multiplier (NRM)
Net Rent Multiplier (NRM)
Indicates how many times the net operating income represents the property acquisition cost (Value of the Property / Net Operating Income).
 		  0.00          
Operating Expenses Ratio (OER)
Operating Expenses Ratio (OER)
Indicates the percentage of the effective gross income which is absorbed by the operating costs.(Operating Expenses / Effective Gross Income).
 		  0.00 %          
Debt Coverage Ratio (DCR)
Debt Coverage Ratio (DCR)
This ratio is used to estimate the refund capacity of a debt based on the net income generated by a property. (Net Operating Income / Financing Cost).
 		  0.00          
Break Even Ratio (BER)
Break Even Ratio (BER)
This ratio indicates the level of necessary occupation needed to face the financial and exploitation obligations. (Operating Expenses + Financing Costs / Potential Gross Income).
 		  0.00 %          
Capitalization Rate (Cap. Rate)
Capitalization Rate (Cap. Rate)
It's a measure of the ratio between the cash flow produced by a property and its capital cost (the original price paid) or alternatively its current market value. (Net operating income / value (or selling price) = Capitalization Rate).
 		  0.00 %          
Internal Rate of Return (IRR)
Internal Rate of Return (IRR)
Discount rate for which the actualized liquidity values generated by the property are equal to the actualized withdrawal values necessary to carry out this investment.
 		  0.00 %          
Sale Price Evaluation
Sale Price Evaluation
Building value based on the customer's equity return rate.
 		  $ 0.00          
Cash on Cash Return              
   
Cash on Cash Return before Equity (Loan Reduction) (ConC before Eq.)
This ratio represents the equity return rate of the owner based on his personal tax rate if a tax rate has been specified. The mentioned equity return illustrates the return rate before capitalization following the first year of acquisition. (See financial Forecasts for the following years). (Cash Flow before Capitalization / Down Payment).
 		  0.00 %          
   After Equity
Cash on Cash Return after Equity (Loan Reduction) (ConC after Eq.)
This ratio represents the equity return rate of the owner based on his personal tax rate if a tax rate has been specified. The mentioned equity return illustrates the return rate before capitalization following the first year of acquisition. (See financial Forecasts for the following years). (Cash Flow after Capitalization / Down Payment).
 		  0.00 %          
   After Equity and Appreciation
Cash on Cash Return after Equity (Loan Reduction) and Appreciation (ConC Appreciation)
This ratio represents the equity return rate of the owner based on his personal tax rate if a tax rate has been specified. The mentioned equity return illustrates the return rate after capitalization and the capital gain following the first year of acquisition. (See financial Forecasts for the following years). (Cash Flow after Capitalization + capital gain/ Down Payment).
 		  0.00 %          
*These margins have been determined in an approximate way according to what we judge to be a less demanding return rate, a normal return rate or a high return rate. These values can differ from what you consider a high return rate. This chart was conceived to interpret the results for your information only.
Cash on Cash Return
This diagram represents the portion of the initial down payment that goes back in the investor's pockets throughout the years. In other words, with this diagram it is possible to identify the moment when the investor will have entirely recovered his down payment by observing the moment when 100% is reached.

Because your down payment is set to 0%, your rate of return is infinite; you are collecting income without an investment on your part. Which means the graph cannot be generated.

    Cash on Cash Return after Equity and Appreciation
    Cash on Cash Return (After Equity)
    Cash on Cash Return
 
Cumulative Equity
This diagram represents the accumulated amount throughout the years thanks to the profit generated by the building, the assets accumulated by the mortgage reimbursement and to the increase of the building's value. In other words, it is possible to identify the moment when the investor will have entirely recovered his initial down payment by observing the moment when the line, representing the down payment, is reached.

    Annual Appreciation of the Property
    Principal Payment
    Cash Flow (after Taxes)
    Down Payment
    Cumulative for the previous years
Financial Forecast
 Year 1Year 2Year 3Year 4Year 5
Incomes and Expenses
Potential Gross Income$ 0.00$ 0.00$ 0.00$ 0.00$ 0.00
Operating Expenses$ 0.00$ 0.00$ 0.00$ 0.00$ 0.00
Net Operating Income$ 0.00$ 0.00$ 0.00$ 0.00$ 0.00
Debt Service$ 0.00$ 0.00$ 0.00$ 0.00$ 0.00
Cash Flow (before Taxes)$ 0.00$ 0.00$ 0.00$ 0.00$ 0.00
Financing
Principal Payment$ 0.00$ 0.00$ 0.00$ 0.00$ 0.00
Mortgage Interest$ 0.00$ 0.00$ 0.00$ 0.00$ 0.00
Mortgage Balance$ 0.00$ 0.00$ 0.00$ 0.00$ 0.00
Profitability
Gross Rent Multiplier (GRM)0.000.000.000.000.00
Net Rent Multiplier (NRM)0.000.000.000.000.00
Operating Expenses Ratio (OER)0.000.000.000.000.00
Debt Coverage Ratio (DCR)0.000.000.000.000.00
Break Even Ratio (BER)0.00 %0.00 %0.00 %0.00 %0.00 %
Capitalization Rate0.00 %0.00 %0.00 %0.00 %0.00 %
Cash on Cash Return (Before Equity)0.00 %0.00 %0.00 %0.00 %0.00 %
Cash on Cash Return (After Equity)0.00 %0.00 %0.00 %0.00 %0.00 %
Cash on Cash Return after Equity and Appreciation0.00 %0.00 %0.00 %0.00 %0.00 %
Equity (cumulative)
Property Value (Annual Appreciation 2.00%)$ 0.00$ 0.00$ 0.00$ 0.00$ 0.00
Property Appreciation$ 0.00$ 0.00$ 0.00$ 0.00$ 0.00
Principal Payment$ 0.00$ 0.00$ 0.00$ 0.00$ 0.00
Cash Flow (before Taxes)$ 0.00$ 0.00$ 0.00$ 0.00$ 0.00
Total Equity$ 0.00$ 0.00$ 0.00$ 0.00$ 0.00
Assumptions and Considerations
  • Appreciation of the property is set to 2%.
  • The sale price evaluation is calculated considering a cash on cash return of 10%.
  • Inflation is set at 2% per year for the income and expenses.
  
© 2003-2022 MAGEX TECHNOLOGIES INC. All Rights Reserved.