All Property KPIs on One Page
Nineteen metrics you need on a property project, each with a formula and worked example. Pick a KPI to open the explanation and a free calculator.
Returns
Gross yield
Calculate gross initial yield with the formula, a worked example and a free calculator. Includes what counts as a good gross yield.
Net yield
Calculate net initial yield with the formula, a worked example and a free calculator. Includes which operating costs belong in it.
Cash-on-cash
Calculate cash-on-cash return: what actually stays in your account. With a worked example for interest-only and annuity.
Return on equity
Calculate return on equity: cash flow, principal and capital growth combined. Including how much of your return is an assumption.
Cap rate
Calculate cap rate with the formula and a worked example. Includes how it differs from gross and net yield, and why the denominator is market value.
ROI
Calculate the ROI of a development project with the formula and a worked example. Including ROI with and without interest costs.
IRR
Calculate the IRR of a property project. Project IRR, equity IRR and exit IRR side by side, with the formula and a worked example.
Gross rent multiple
Calculate the gross rent multiplier: purchase price divided by annual rent. With a worked example and why it is not the inverse of gross yield.
Operations
NOI
Calculate NOI with the formula and a worked example. Includes which costs belong in it, and why four other metrics depend on it.
Cash flow
Calculate the monthly cash flow of a rental property: rent less operating costs, interest and principal. With a worked example and a free calculator.
Payback period
Calculate the payback period of a rental property: how many years of cash flow return your equity. Counted cumulatively, not as a flat division.
Break-even occupancy
Calculate the occupancy rate at which you exactly break even. With the two management-fee modes that shift the answer and what above 100% means.
Financing
DSCR
Calculate DSCR with the formula and a worked example. See the gap between interest-only and annuity, and what lenders require.
LTV
Calculate LTV with the formula and a worked example. Including why your equity is more than 100% minus the LTV.
ICR
Calculate ICR with the formula and a worked example, and see when to use ICR rather than DSCR.
LTC
Calculate loan-to-cost with the formula and a worked example. Includes LTC at exit, loan-to-GDV alongside it and your peak cash requirement.
Development and exit
Per m²
Calculate build cost per m², total cost per m², sales price per m² and the break-even sale price. Including which floor area belongs in which denominator.
Equity multiple
Calculate the equity multiple: how many times your equity comes back over the hold. With the exit multiple and your net equity position at sale.
Profit margin
Calculate the profit margin of a development project: profit divided by sales revenue. Including how margin differs from ROI.