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Updated over 6 years ago on . Most recent reply

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Ryan Dolinar
  • Architect
  • Phoenix, AZ
0
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2
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Explanation of Net Income ROI

Ryan Dolinar
  • Architect
  • Phoenix, AZ
Posted

I was looking at a pro forma and it read Net Income ROI which I am unfamiliar with. The pro forma also has Cash ROI and Total ROI which I am familiar with. I haven't been able to figure out what Net Income ROI is, or at least numbers I have tried to plug in have made completely different results than what was listed on the pro forma. Is the equation Net Income ROI = Net Income after Taxes/ Down Payment? As reference:

Net Income ROI was listed as Year 1: 13.9% Year 2: 21.5% and Year 5: 34.0%

Cash ROI Year 1: 22.9% Year 2: 30.0% and Year 5: 39.3%

Total ROI Year 1 30.5% Year 2: 38.0% and Year 5: 49.8%

Thanks in advance for explanations.  

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