Real Estate Math

How do you calculate commission?

Sales Price x commission Rate

How do you calculate the agents commission?

(Sales price x rate) x Agent split

How do you calculate the loan amount?

Price - down payment

How do you calculate down payment percentage?

Down payment amount / sales price

How do you calculate property taxes?

(Assessed value / 1000) x Mill rate

Or

Assessed value x tax rate

What is the acronym to calculate property taxes?

ATM → Assessed / 1000 x Mills

Loan to value formula ?

Loan / sales price or appraise value (whichever is lower)

How do you calculate GRM ? (Gross Rent Multiplier)

Property price / rental income (annually)

How do you calculate cap rate?

Net Operating Income (NOI) / property value

How do you calculate income approach ?

NOI / Cap rate

Market data approach

Comparing the subject property to similar properties around it

How do you calculate cost approach?

Cost of building - Depreciation + land value

How do you calculate interest for an amortization loan?

Loan balance x rate / 12

How do you calculate principal for an amortization loan?

Payment - interest

1 point is how much

1% of the loan amount

How do you calculate cost (with points)

Loan x points (%)

How do you calculate profit percentage?

(Profits / cost) x 100

How do you calculate selling price?

Cost + (cost x profit gain)

How do you calculate principle and interest (amortization)

(Loan amount / 1000) x loan constant

1 acre

43,560 sq ft

1 mile

5,280 ft

1 sq mile

640 Acres

1 yard

3 feet

1 cubic yard

27 cubic feet

1 cubic foot

1728 cubic inches