BP Calculators: Pro Forma Cap Rate vs Purchase Cap Rate?

[Allen S.]

Hello everyone... calculator question here:

I have been trying to figure out the difference between the Pro Forma Cap Rate and the Purchase Cap Rate on the calculators and the only difference I can see is in how financing is handled:

Purchase Cap Rate - treats the deal as if it were a cash purchase, and ignores any financing

Pro Forma Cap Rate - uses the P&I payment as an expense, lowering the cap rate from the Purchase Cap Rate

Is this correct?  Am I missing something?

-Allen