Free Spreadsheet for Calculation of Before-Tax Cash Flow for Apartments

BTCF calculation

If you are considering the acquisition of an apartment building (small or big) you will definitely need to calculate its Before-tax cash flow (BTCF). You can find the formulas for the BTCF calculation along with an example in the post Property Investment Basics: Before-Tax Cash Flow.

For the convenience of our readers, we have put those formulas into a spreadsheet that you can use for a quick and easy calculation of this important property investment performance metric. Beware that your BTCF calculation will be as accurate as the numbers you input in this spreadsheet for the various revenue and expense items pertaining to the property. The spreadsheet will calculate automatically the BTCF if you enter the Number of Units, Average Monthly Rent/Unit, Other Income (Annual), Recoveries, Vacancy and Collection Losses (%) and Operating Expenses.

It will also calculate automatically the annual debt service that needs to be taken into account when calculating the BTCF by entering in another sheet in the spreadsheet the interest rate, amount and duration of the loan, which needs to be a fixed-rate loan. If it is not a fixed-rate loan or there are more than one loans burdening the property, then you need to type your own calculation of the annual debt service for all loans burdening the property under consideration. 


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Disclaimer for BTCF Calculation Spreadsheet

By downloading the spreadsheet through the link below you agree that in no event shall www.property-investment.net be liable for any damages (whether direct, indirect, punitive, incidental, special, consequential or otherwise) arising out of, or in any way connected with, the use or inability to use this spreadsheet. In no event shall www.property-investment.net total liability to you for damages, losses, and causes of action exceed the amount paid by you, if any, for accessing this spreadsheet.

Click here to download the free BTCF calculation spreadsheet

 

Author: Petros Sivitanides, Ph.D.

Dr. Sivitanides is a seasoned expert in real estate investment strategy and analysis, property portfolio modeling and strategic analysis, and real estate market research and econometric forecasting with over 16 years of experience with leading global real estate investment managers and real estate consultants (CBRE Global Investors, AXA Real Estate, Torto Wheaton Research, DTZ, etc.). He is the editor of the textbook titled “Market Analysis for Real Estate”, which has been used as the main textbook for a graduate course at Harvard University. He is also the author of the book "Real Estate Investing for Double-Digit Returns" and many widely quoted articles that have been published in popular real estate journals. Currently, he is the Head of the Real Estate Department at Neapolis University in Cyprus, and an international real estate consultant.

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