Real Estate Calculations

[Devin James]

When I first started my real estate journey in 2018 and started listening to BiggerPockets Real Estate podcasts, I was only familiar with Cash on Cash return.

Once I actually entered the game in 2020, I quickly realized that there were many more calculations to take into consideration:

ROI - Return on Investment

ROE - Return on Equity

IRR - Internal Rate of Return

EM - Equity Multiple

Cap Rate - Capitalization Rate

CoC - Cash on Cash Return

AAR - Average Annual Return

(I’m sure I'm missing some)

I still struggle to juggle all of these calculations today.

Developers, syndicators, flippers, etc., will all have different preferences.

Which key calculations do you prioritize on when analyzing your deals? Are there any that you don't even consider?