Transaction Costs include finance costs, broker compensation, and initial repairs.

Annual Price Appreciation is the assumed yearly increase in the property’s market value over the holding period.

Estimated Selling Costs include expected disposition costs such as broker commissions, closing costs, transfer fees, and similar sale expenses.

Anticipated Holding Period is the number of years you expect to own the property before sale. The calculator models results for 1 to 10 years.

General Expense Inflation Rate applies to salary, utilities, insurance, supplies, advertising, maintenance and repairs, and HOA.

Tax Rate on Capital Gains is the rate applied to the long-term gain realized when the property is sold above its adjusted tax basis.

Tax Rate on Depreciation Recapture is the rate applied to prior depreciation deductions that are recaptured and taxed when the property is sold.

Marginal Tax Rate is the tax rate applied to the next dollar of ordinary taxable income and is used here for after-tax cash flow analysis.

Depreciation Basis is the portion of the property value that can be depreciated for tax purposes, typically excluding land value.

Depreciation Period in Years is the number of years over which the depreciation basis is deducted for tax purposes.

Gross Rent Multiplier compares purchase price to annual gross rent. Lower values generally indicate more rent relative to price.

Gross Income Multiplier compares purchase price to annual gross income, including rent plus other income before expenses.

Net Income Multiplier compares purchase price to net operating income after operating expenses and before debt service and taxes.

Capitalization Rate equals net operating income divided by market value or purchase price. It is a common unlevered return benchmark.

Discount Rate is the target rate of return used to convert future cash flows into present value for valuation and risk analysis.