Versioned methodology
How EstateCalc calculates returns
Current methodology date: August 9, 2026
Inputs stay explicit
Results use only the numbers shown in the calculator. Example defaults help demonstrate the interface; they are not market forecasts or recommended underwriting assumptions.
Income and operating expenses
Effective gross income is potential rent and other income after the vacancy assumption. Net operating income subtracts recurring operating expenses but excludes financing, depreciation and income taxes.
Financing and cash flow
Mortgage payments use standard fixed-rate amortization. Pre-tax cash flow equals net operating income minus debt service. Cash-on-cash return divides that annual cash flow by the initial cash invested.
Projections are scenarios
Long-term values compound the user-entered rent growth, expense growth and appreciation rates. Sale proceeds subtract selling costs and the projected remaining loan balance. Real outcomes can differ materially.