Metric library

Know what the number
actually answers.

Formulas are easy. Consistent inputs, correct definitions, and honest interpretation are where underwriting earns its keep.

Net operating income (NOI)

Learn how to calculate real-estate net operating income, which expenses belong in NOI, and how investors use it for cap rate and debt analysis.

Calculate real-estate cap rate from NOI and property value, understand what it reveals, and avoid confusing cap rate with a financed return.

See how to calculate cash-on-cash return using annual pre-tax cash flow and total cash invested, with a worked rental-property example.

Calculate debt service coverage ratio from NOI and annual debt service, and learn why lenders and investors stress-test DSCR.

Learn the loan-to-value formula, calculate LTV from loan balance and property value, and understand how LTV differs from cash invested.

Calculate monthly rent-to-price ratio, understand the real-estate 1% rule, and learn why it is only a first-pass screening tool.

Calculate gross rent multiplier from property price and annual gross rent, then learn when GRM is useful and what expenses it ignores.

Learn how real-estate investors estimate after-repair value from comparable sales, adjustments, and a conservative value range.

Calculate a defensible maximum allowable offer by subtracting rehab, transaction costs, required profit, and assignment fees from supported value.

Calculate short-term-rental break-even occupancy from fixed monthly costs, available nights, nightly rate, and variable cost per booking night.