Annualized Total Return Calc

3 Replies

Hello,

I am just looking at the rental calculator and verifying the numbers, but I can't figure out how to calculate Annualized Total Return. The BP calc has it going down every year, but all my calculations are going up every year. 

In googlesheets I do this:

(Total Profit if Sold / Repair Cost) / # of years

It works for year one only and then it's messed up.

@Jon Homes, 

I notice that too. It used to be different. 

I THINK what is happening is that it is adding the yearly cash flow up, and equity build up, but then it is dividing by THAT years equity instead of your ORIGINAL equity position. Hope that makes sense. 

@Account Closed I have been working on exporting your calc results to an excel sheet and have a few good ideas if you want to talk about it shoot me a message.

Dan Dietz

@Jon Homes what I do is either manually or by copy and pasting it add up a given years cash flow and equity growth (combination of your appriciation figure and pay down) from the previous year, and divide THAT by my ORIGINAL equity or 'cash needed' figure to come up with that years returns.

Not sure if you noticed but in the report, if you go to the graph at the bottom and hoover over the 'dots' on the graph lines if will give you figures for EVERY year instead of just the ones that show up above.

Dan Dietz