Real Estate

Adjusted Basis

Basis = Purchase + Improvements − Depreciation

Tax basis tracking purchase price, capital improvements, and depreciation deductions.

Capitalization Rate

Cap Rate = NOI / Property Value

Real-estate cap rate from net operating income and property value.

Debt Coverage Ratio

DCR = NOI / Annual Debt Service

Debt service coverage for commercial real-estate underwriting — lender threshold ≥ 1.25.

Debt-to-Income (DTI)

DTI = Monthly Debts / Gross Monthly Income

Personal debt-to-income ratio for mortgage qualification.

Gain On Sale

Gain = Sale − Selling Costs − Adjusted Basis

Taxable gain on sale of an investment property.

Gross Operating Income

GOI = GSI − Vacancy − Credit Loss

Effective rental income after vacancy and credit-loss deductions.

Gross Rent Multiplier

GRM = Price / Gross Annual Rent

Quick valuation multiplier from purchase price and gross annual rent.

Loan To Value Ratio

LTV = Loan / Property Value

Loan-to-value ratio for mortgage underwriting and PMI thresholds.

Mortgage Loan

M = P · r · (1+r)ⁿ / ((1+r)ⁿ − 1)

Monthly payment, total interest, and amortization schedule for a fixed-rate mortgage.

Mortgage Loan Points

Cost = Points% × Loan Amount

Up-front cost of discount points and break-even period vs lower interest rate.

Mortgage Refinance Break-Even

Months = Closing Costs / Monthly Savings

Months to recover refinance closing costs from the lower-payment savings.

Net Income Multiplier

NIM = Price / NOI

Property valuation multiplier from purchase price and net operating income.

Net Operating Income

NOI = GOI − Operating Expenses

Net operating income from effective rental income and operating expenses.

Operating Expense Ratio

OER = OE / GOI

Operating expense ratio for income-property efficiency analysis.

Vacancy and Credit Loss

V&C = (Vacancy% + Credit Loss%) × GSI

Vacancy and credit-loss reserve from gross scheduled rental income.

Real estate investing and mortgage calculators for property investment analysis: monthly mortgage payment and points, refinance break-even, debt-to-income and loan-to-value ratios, capitalization rate, debt coverage ratio (DCR), gross rent multiplier (GRM), gross operating income, net operating income (NOI), operating expense ratio, vacancy and credit loss, adjusted basis, and gain on sale.

Used by landlords, real-estate investors, and brokers for quick deal-screening and tax-basis calculation.

When to use these calculators

Use Cap Rate (NOI ÷ purchase price) for quick income-property screening. Use DCR (NOI ÷ annual debt service) to verify a property meets lender thresholds (typically ≥ 1.25). Use Adjusted Basis when selling to compute taxable gain (basis = purchase price + improvements − depreciation). Use Mortgage Loan for monthly payment, Mortgage Points to compare points-vs-rate scenarios, and Refinance Break-Even to decide whether refinancing pays off.

These are educational tools — work with a CPA and a licensed mortgage professional for actual transactions.

Frequently Asked Questions

What's a good cap rate?: Cap rate varies by market and property class. 4-6% is typical for stabilized Class-A multifamily in major metros; 8-12% for Class-C or secondary markets. Higher cap = higher cash yield but typically higher risk. The Capitalization Rate calculator solves for cap, NOI, or value given the other two.
How is debt coverage ratio used in lending?: DCR = NOI ÷ annual debt service. Commercial real-estate lenders typically require DCR ≥ 1.20-1.25 for stabilized properties. A DCR of 1.25 means the property generates 25% more income than the debt payment requires — a margin against vacancy and expense increases.
What's the difference between basis and adjusted basis?: Basis is your initial cost in the property (purchase price + closing costs). Adjusted basis adds capital improvements and subtracts accumulated depreciation. At sale, gain = sale price − selling costs − adjusted basis. The Adjusted Basis calculator tracks all of those line items.