We'll help you estimate how much you can afford to spend on a home. Calculate your buying power Annual income $ Total income before taxes for you and your household members. Monthly debt $ Payments you make for loans or other debt, but not living expenses like rent, groceries or utili...
Although I’ve been a commercial real estate investor for many years, I’m still surprised sometimes when I calculate the power of debt with regard to increasing the value of equity. What is the formula for a cap rate? The formula for a capitalization rate is calculated by dividing a prope...
When it comes to learning how to calculate cap rate, you must understand that there are a few factors that affect it. In real estate investing for beginners, it is not enough to know the numbers. It’s important also to understand what’s behind the numbers, what drives them, and what ...
Changing prices are the most important determinant of purchasing power. Inflation erodes the power, while deflation (such as during the 2008 financial crisis and the years following World War I) increases it. The formula to calculate the rate of inflation looks at the difference between the starti...
Here’s how to calculate ROI and the solar payback period to decide if an investment in home solar power is worth it for your energy needs. How Do Solar Panels Pay Back Their Investment Cost? Solar panels usually provide a positive return on investment over time. But how long does a sola...
>> Related:Learn more abouthow to calculate home equity A Guide To Building Equity in Your Home The lever pulling starts before you even move in, beginning with your down payment and continuing throughout your time as a homeowner. We’ll take a detailed look at five ways you can build eq...
A stock may present a buying prospect if its market price falls below its intrinsic value or a selling opportunity when it trades above it. Financial analysts use several proven methods to calculate intrinsic value, including dividend discount models, discounted cash flow analysis, and residual incom...
The price level relates to the prices of various goods and services. The inflation rate is the percentage change in price levels. How Do You Calculate the Inflation-Adjusted Price? Prices are adjusted for inflation by dividing the price index for the current period by a previous period and the...
How much home can I afford? Many people start by determining what they can afford as a monthly payment. A common starting point is to calculate 25% of your gross monthly income to help determine a manageable monthly mortgage payment.
Energy-efficient products and services can cost more than conventional ones, but the electricity savings from energy-efficient measures should eventually offset their extra cost. To calculate the time it will take to break even on energy-efficient purchases, you need to know the product's type and...