Exam 1 Formulas Flashcards

1
Q

How to calculate Debt Service Coverage Ratio?

A

NOI/Annual Debt Service

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2
Q

How to calculate the loan to value ratio?

A

Loan Amount/Cap Rate

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3
Q

How to calculate the Return on Equity?

A

Cash Flow Before Taxes/Total Equity Invested

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4
Q

How to Calculate Return on Cost?

A

Net Operating Income/ Loan Amount

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5
Q

How to Calculate the Breakeven Ratio

A

(Operating Expenses + Annual Debt Service)/Gross Operating Income

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6
Q

How to calculate loan to cost?

A

Loan Amount/Total Development Budget

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