Resources
Formula library
An alphabetical library of every formula on LEAR, plus reference links curated by our team.
Every calculator's equation in one place, A to Z. Open a calculator to run the numbers with guidance.
1
- 1031 Exchange Tax DeferralReal Estate · Tax
Estimates the tax owed on selling an investment property, and how much a 1031 exchange defers.
Depreciation×0.25+Realized Gain−Depreciation×Federal Rate%100+Realized Gain×NIIT%+State Rate%100Open calculator →
A
- Appreciation RateReal Estate · Return
Shows percentage increase in value.
New Value−Original ValueOriginal ValueOpen calculator → - Auto Total Cost of OwnershipAuto · Cost
Adds purchase, fuel, maintenance, and insurance, less resale value.
Purchase Price+Fuel+Maintenance+Insurance−Resale ValueOpen calculator →
B
- Bid PriceConstruction · Pricing
Quote price after marking up total cost.
Material+Labor×1+Markup%100Open calculator → - Billable Hourly RateSmall Business · Pricing
Hourly rate needed to hit an income target.
Target Income+Annual ExpensesBillable HoursOpen calculator → - Break-Even Occupancy RateReal Estate · Income
Minimum occupancy needed to cover expenses and debt service.
Operating Expenses+Debt ServiceGross Potential IncomeOpen calculator → - Break-Even SalesFranchise (mom and pop shops) · Planning
Sales dollars needed to cover fixed costs.
Fixed CostsContribution Margin%100Open calculator → - Break-Even UnitsSmall Business · Planning
Units you must sell to cover fixed costs.
Fixed CostsPrice−Variable Cost per UnitOpen calculator →
C
- Capitalization RateReal Estate · Valuation
Measures property return from NOI and value.
Net Operating IncomeProperty ValueOpen calculator → - Cash RunwaySmall Business · Planning
Months of cash left at the current burn rate.
Cash on HandMonthly BurnOpen calculator → - Cash-on-Cash ReturnReal Estate · Return
Compares annual pre-tax cash flow with cash invested.
Annual Pre-Tax Cash FlowTotal Cash InvestedOpen calculator → - Client ProfitabilityMarketing · Income
Profit left on a client after labor and overhead.
Revenue−Labor Cost−OverheadOpen calculator → - Compound Annual Growth RateReal Estate · Return
Annualized growth rate between beginning and ending value.
Ending ValueBeginning Value1Years−1Open calculator → - Concrete Cubic YardsConstruction · Quantity
Cubic yards of concrete for a slab.
Length×Width×Thickness27Open calculator → - Conversion RateMarketing · Performance
Share of visitors that become leads or customers.
ConversionsVisitors×100Open calculator → - Cost per Square FootConstruction · Cost
Job cost divided by finished area.
Total CostAreaOpen calculator → - Customer Acquisition CostMarketing · Cost
What it costs on average to win one new customer.
Marketing & Sales SpendNew Customers AcquiredOpen calculator → - Customer Lifetime ValueSmall Business · Return
Gross profit a customer brings over their lifetime.
Avg Monthly Revenue×Gross Margin%100×Lifetime MonthsOpen calculator →
D
- Debt Service Coverage RatioReal Estate · Loan
Shows whether NOI covers annual debt obligations.
Net Operating IncomeAnnual Debt ServiceOpen calculator → - Debt YieldReal Estate · Loan
Compares NOI with loan amount for lender risk review.
Net Operating IncomeLoan AmountOpen calculator →
E
- Effective Gross IncomeReal Estate · Income
Gross potential income after vacancy and credit loss.
Gross Potential Income−Vacancy and Credit Loss+Other IncomeOpen calculator → - Equity MultipleReal Estate · Return
Compares total cash returned with total equity invested.
Total Cash DistributionsTotal Equity InvestedOpen calculator →
G
- Gross ProfitFranchise (mom and pop shops) · Income
Revenue left after the cost of goods sold.
Revenue−Cost of Goods SoldOpen calculator → - Gross Profit MarginSmall Business · Margin
Share of revenue left after the cost of goods sold.
Revenue−Cost of Goods SoldRevenueOpen calculator → - Gross Rent MultiplierReal Estate · Valuation
Quick valuation ratio using price and gross rent.
Property PriceAnnual Gross Rental IncomeOpen calculator →
I
- Inventory TurnoverFranchise (mom and pop shops) · Efficiency
How many times inventory sells through in a period.
Cost of Goods SoldAverage InventoryOpen calculator →
J
- Job Profit MarginConstruction · Margin
Profit share of the bid after total cost.
Bid Price−Total CostBid PriceOpen calculator →
L
- Labor CostConstruction · Cost
Total crew labor cost for a job.
Hours×Crew Size×Hourly RateOpen calculator → - Labor Cost PercentageFranchise (mom and pop shops) · Cost
Labor cost as a share of revenue.
Labor CostRevenue×100Open calculator → - Loan-to-Value RatioReal Estate · Loan
Measures leverage compared with property value.
Loan AmountProperty ValueOpen calculator →
M
- Marketing ROIMarketing · Return
Profit return on every dollar of marketing spend.
Revenue×Gross Margin−Marketing SpendMarketing SpendOpen calculator → - Material Cost with WasteConstruction · Cost
Total material cost including a waste allowance.
Quantity×Unit Cost×1+Waste%100Open calculator → - Mileage ReimbursementAuto · Cost
Multiplies business miles by the per-mile rate.
Miles Driven×Rate per MileOpen calculator → - Monthly Amortization PaymentReal Estate · Loan
Estimates monthly payment for an amortizing loan.
P×r×1+rn1+rn−1Open calculator →
N
- Net Operating IncomeReal Estate · Income
Income remaining after operating expenses.
Gross Operating Income−Operating ExpensesOpen calculator →
O
- Operating Expense RatioReal Estate · Income
Shows what share of income is consumed by operating expenses.
Operating ExpensesGross Operating IncomeOpen calculator →
P
- Payback PeriodReal Estate · Return
Estimates years needed to recover initial investment from annual cash flow.
Initial InvestmentAnnual Cash FlowOpen calculator → - Price from MarkupSmall Business · Pricing
Selling price after applying a markup to your cost.
Cost×1+Markup%100Open calculator → - Profit MarginFranchise (mom and pop shops) · Margin
Share of each sales dollar kept as net profit.
Net ProfitRevenue×100Open calculator → - Property Value from NOIReal Estate · Valuation
Estimates value from NOI and cap rate.
Net Operating IncomeCap RateOpen calculator → - Purchase Resale ROIPersonal · Return
Return on a personal purchase from its estimated future value.
Estimated Future Value−Purchase PricePurchase PriceOpen calculator →
R
- Rent per Square FootReal Estate · Lease
Normalizes annual rent by rentable square footage.
Annual RentRentable Square FeetOpen calculator → - Return on Ad SpendMarketing · Return
Revenue earned for every dollar of ad spend.
Revenue from AdsAd SpendOpen calculator → - Return on InvestmentReal Estate · Return
Measures profit compared with investment cost.
ProfitInvestment CostOpen calculator →
S
- Seller Discretionary EarningsReal Estate · Valuation
Adds owner benefits and discretionary expenses back to earnings.
Net Income+Owner Salary+Discretionary Expenses+One-Time ExpensesOpen calculator →
T
- True Cost of a PurchasePersonal · Cost
Adds tax, fees, and financing interest to the sticker price.
Price+Tax+Fees+Total InterestOpen calculator →
V
- Vacancy RateReal Estate · Income
Measures empty or uncollected rentable space or income.
Vacant UnitsTotal UnitsOpen calculator →
External resources
Curated external references are on the way. Check back soon.