Real Estate Investment Calculator for Income, IRR, and Property Value

Evaluate rental property opportunities with projected income, operating expenses, before-tax and after-tax cash flow, internal rate of return (IRR), cap rate, and estimated sale proceeds.

Property Income

Purchase Price

Purchase Transaction Costs

Annual Price Appreciation

Estimated Selling Costs

Anticipated Holding Period in Years(1-10)

Rent Per Month

Increase in Rent (Years 1–10)

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Estimated Vacancy Rate (Years 1–10)

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Other Income as a Percentage of Rent

Property Expenses

General Expense Inflation Rate

Management Fees (% of Gross Income)

Increase in Property Taxes (Years 1–10)

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Annual Salary Expenses

Annual Utilities

Annual Insurance

Annual Supply Expense

Annual Advertising Expense

Annual Maintenance & Repairs

Annual Property Taxes

Annual HOA

Mortgage

Total Mortgage Amount

Mortgage Term in Years

Mortgage Interest Rate

Taxes and Depreciation

Tax Rate on Capital Gains

Tax Rate on Depreciation Recapture

Marginal Tax Rate

Depreciation Basis

Depreciation Period in Years

Ratios

Gross Rent Multiplier (GRM)

Gross Income Multiplier (GIM)

Net Income Multiplier (NIM)

Capitalization Rate (Cap Rate)

Discount Rate

Operating Forecast
years	1	2	3	4	5	6	7	8	9	10
Potential Gross Rent	-	-	-	-	-	-	-	-	-	-
Vacancy Allowance	-	-	-	-	-	-	-	-	-	-
	-	-	-	-	-	-	-	-	-	-
Other Income	-	-	-	-	-	-	-	-	-	-
Effective Gross Income	-	-	-	-	-	-	-	-	-	-
Operating Expenses
Management Fee	-	-	-	-	-	-	-	-	-	-
Salary Expense	-	-	-	-	-	-	-	-	-	-
Utilities	-	-	-	-	-	-	-	-	-	-
Insurance	-	-	-	-	-	-	-	-	-	-
Supplies	-	-	-	-	-	-	-	-	-	-
Advertising	-	-	-	-	-	-	-	-	-	-
Maintenance & Repairs	-	-	-	-	-	-	-	-	-	-
Property Taxes	-	-	-	-	-	-	-	-	-	-
HOA	-	-	-	-	-	-	-	-	-	-
Total Expenses	-	-	-	-	-	-	-	-	-	-
Net Operating Income	-	-	-	-	-	-	-	-	-	-
Forecasted Operating Expense Ratios
	-	-	-	-	-	-	-	-	-	-
Amortization Schedule
Interest paid	-	-	-	-	-	-	-	-	-	-
Principal paid	-	-	-	-	-	-	-	-	-	-
Total Debt Service	-	-	-	-	-	-	-	-	-	-
Mortgage Balance
	-	-	-	-	-	-	-	-	-	-
Projected Before-Tax Cash Flows from Operations
Potential Gross Rent	-	-	-	-	-	-	-	-	-	-
Vacancy Allowance	-	-	-	-	-	-	-	-	-	-
	-	-	-	-	-	-	-	-	-	-
Other Income	-	-	-	-	-	-	-	-	-	-
Effective Gross Income	-	-	-	-	-	-	-	-	-	-
Operating Expenses
Management Fee	-	-	-	-	-	-	-	-	-	-
Salary Expense	-	-	-	-	-	-	-	-	-	-
Utilities	-	-	-	-	-	-	-	-	-	-
Insurance	-	-	-	-	-	-	-	-	-	-
Supplies	-	-	-	-	-	-	-	-	-	-
Advertising	-	-	-	-	-	-	-	-	-	-
Maintenance & repairs	-	-	-	-	-	-	-	-	-	-
Property Taxes	-	-	-	-	-	-	-	-	-	-
HOA	-	-	-	-	-	-	-	-	-	-
Total Expenses	-	-	-	-	-	-	-	-	-	-
Net Operating Income	-	-	-	-	-	-	-	-	-	-
Debt Service	-	-	-	-	-	-	-	-	-	-
Before-Tax Cash Flow	-	-	-	-	-	-	-	-	-	-
Tax Calculation
Net Operating Income	-	-	-	-	-	-	-	-	-	-
Interest Expense	-	-	-	-	-	-	-	-	-	-
Depreciation	-	-	-	-	-	-	-	-	-	-
Taxable Income (Loss)	-	-	-	-	-	-	-	-	-	-
Marginal Tax Rate	-	-	-	-	-	-	-	-	-	-
Income Tax	-	-	-	-	-	-	-	-	-	-
Projected After-Tax Cash Flows from Operations
Potential Gross Rent	-	-	-	-	-	-	-	-	-	-
Vacancy Allowance	-	-	-	-	-	-	-	-	-	-
	-	-	-	-	-	-	-	-	-	-
Other Income	-	-	-	-	-	-	-	-	-	-
Effective Gross Income	-	-	-	-	-	-	-	-	-	-
Operating Expenses
Management Fee	-	-	-	-	-	-	-	-	-	-
Salary Expense	-	-	-	-	-	-	-	-	-	-
Utilities	-	-	-	-	-	-	-	-	-	-
Insurance	-	-	-	-	-	-	-	-	-	-
Supplies	-	-	-	-	-	-	-	-	-	-
Advertising	-	-	-	-	-	-	-	-	-	-
Maintenance & repairs	-	-	-	-	-	-	-	-	-	-
Property Taxes	-	-	-	-	-	-	-	-	-	-
HOA	-	-	-	-	-	-	-	-	-	-
Operating Expenses	-	-	-	-	-	-	-	-	-	-
Net Operating Income	-	-	-	-	-	-	-	-	-	-
Debt Service	-	-	-	-	-	-	-	-	-	-
Before-Tax Cash Flow	-	-	-	-	-	-	-	-	-	-
Income Taxes	-	-	-	-	-	-	-	-	-	-
After-Tax Cash Flow	-	-	-	-	-	-	-	-	-	-

Estimate of Investor's Adjusted Tax Basis

Purchase Price	-
Transaction Costs	-
Initial Tax Basis	-
Cumulative Depreciation	-
Adjusted Basis Prior to Sale	-
Selling Costs	-
Adjusted Basis at Time of Sale	-

Estimated Income Tax Consequences

Selling Price	-
Adjusted Basis	-
Initial Gain on Disposal	-
Gain from Depreciation Recapture	-
Long Term Capital Gain	-
Tax on Depreciation Recapture	-
Tax on Capital Gain	-
Total Tax Liability on Sale	-

Etimate of After-Tax Equity Reversion

Selling Price	-
Selling Costs	-
Net Sale Proceeds	-
Mortgage Balance	-
Before Tax Equity Reversion	-
Taxes Due on Sale	-
After Tax Equity Reversion	-

Income Multipliers

Gross Rent Multiplier:	Market Price	-	/	Gross Rents	-	=	-
Gross Income Multiplier:	Market Price	-	/	Effective Gross Income	-	=	-
Net Income Multiplier:	Market Price	-	/	Net Operating Income	-	=	-

Using Multipliers to Estimate Market Value

Gross Rent Multiplier Method:	Gross Rents	-	x	Input GRM	-	=	-
Gross Income Multiplier Method:	Effective Gross Income	-	x	Input GIM	-	=	-
Net Income Multiplier Method:	Net Operating Income	-	x	Input NIM	-	=	-

Financial Ratios

Operating Ratio:	Operating Expenses	-	/	Effective Gross Income	-	=	-
Break-Even Ratio:	(Operating Expenses + Annual Debt Service)	-	/	Effective Gross Income	-	=	-
Debt Coverage Ratio:	Net Operating Income	-	/	Annual Debt Service	-	=	-
Loan-To-Value (LTV) Ratio:	Mortgage	-	/	Market Price	-	=	-

Profitability Measures

Capitalization Rate:	Net Operating Income	-	/	Market Price	-	=	-
Using Cap Rate to Estimate Market Value:	Net Operating Income	-	/	Input cap rate	-	=	-
Equity Dividend Rate: (before-tax)	Before Tax Cash Flow	-	/	Initial Equity	-	=	-
Equity Dividend Rate: (after-tax)	After Tax Cash Flow	-	/	Initial Equity	-	=	-

Discounted Cash Flows
Years	0	1	2	3	4	5	6	7	8	9	10
Before Tax Cash Flow	-	-	-	-	-	-	-	-	-	-	-
Before Tax Equity Reversion	-	-	-	-	-	-	-	-	-	-	-
Total	-	-	-	-	-	-	-	-	-	-	-
								Before Tax IRR			-
After Tax Cash Flow	-	-	-	-	-	-	-	-	-	-	-
After Tax Equity Reversion	-	-	-	-	-	-	-	-	-	-	-
Total	-	-	-	-	-	-	-	-	-	-	-
								After Tax IRR			-

Risk-Adjustment Methods

Anticipated holding period: -

Payback Period
Years	0	1	2	3	4	5	6	7	8	9	10
After Tax Cash Flow	-	-	-	-	-	-	-	-	-	-	-
After Tax Equity Reversion	-	-	-	-	-	-	-	-	-	-	-
Total	-	-	-	-	-	-	-	-	-	-	-
Cumulative	-	-	-	-	-	-	-	-	-	-	-

Payback Years: -

Discount Rate: -

PV of Equity

Variation in Net Operating Income

Input % variation:

% change in Equity Value:

Equity Value

with −10% variation

expected

with +10% variation

Variation in Sales Price

Input % variation:

% change in Equity Value:

with −10% variation

expected

with +10% variation

Assumptions:

Purchase price:

Transaction costs:

Initial Investment Basis:

Mortgage:

Initial Equity:

Selling Price:

– Selling Costs:

Net Proceeds:

– Mortgage Balance:

Before-tax Reversion:

– Taxes due on sale:

After-Tax Reversion:

Marginal Tax Rate:	Depreciable Basis	Recovery Period	Depreciation	Mid-month


years	1	2	3	4	5	6	7	8	9	10
Potential Gross Rent	-	-	-	-	-	-	-	-	-	-
Vacancy Allowance	-	-	-	-	-	-	-	-	-	-
	-	-	-	-	-	-	-	-	-	-
Other Income	-	-	-	-	-	-	-	-	-	-
Effective Gross Income	-	-	-	-	-	-	-	-	-	-

Management Fee	-	-	-	-	-	-	-	-	-	-
Salary Expense	-	-	-	-	-	-	-	-	-	-
Utilities	-	-	-	-	-	-	-	-	-	-
Insurance	-	-	-	-	-	-	-	-	-	-
Supplies	-	-	-	-	-	-	-	-	-	-
Advertising	-	-	-	-	-	-	-	-	-	-
Maintenance & repairs	-	-	-	-	-	-	-	-	-	-
Property Taxes	-	-	-	-	-	-	-	-	-	-
HOA	-	-	-	-	-	-	-	-	-	-

- Operating Expenses	-	-	-	-	-	-	-	-	-	-
Net Operating Income	-	-	-	-	-	-	-	-	-	-
- Debt Service	-	-	-	-	-	-	-	-	-	-
Before-Tax Cash Flow	-	-	-	-	-	-	-	-	-	-

Net Operating Income	-	-	-	-	-	-	-	-	-	-
- Interest Expense	-	-	-	-	-	-	-	-	-	-
- Depreciation	-	-	-	-	-	-	-	-	-	-
Taxable Income (Loss)	-	-	-	-	-	-	-	-	-	-
x Marginal tax rate	-	-	-	-	-	-	-	-	-	-
Income taxes	-	-	-	-	-	-	-	-	-	-
Change in Net Operating Income
After-Tax Cash Flow	-	-	-	-	-	-	-	-	-	-
After-tax Equity Reversion	-	-	-	-	-	-	-	-	-	-
Total Cash Flow	-	-	-	-	-	-	-	-	-	-
	Change in Equity Value: - =
Change in Sales Price
After-Tax Cash Flow	-	-	-	-	-	-	-	-	-	-
After-tax Equity Reversion	-	-	-	-	-	-	-	-	-	-
Total Cash Flow	-	-	-	-	-	-	-	-	-	-
	Change in Equity Value: - =