Equity Build up Rate Calculator

✖Year One Equity Build Up is the increase in an asset's value or equity during the first year of ownership or investment.ⓘ Year One Equity Build Up [EBU_{1 year}]			+10% -10%
✖Year Capital Expenses are costs incurred for acquiring, improving, or maintaining assets within a specific fiscal year.ⓘ Year Capital Expenses [YCE]			+10% -10%

✖Equity Build Up Rate refers to the annual percentage increase in an asset's equity or value over time, typically due to principal repayments or property appreciation.ⓘ Equity Build up Rate [EBUR]

⎘ Copy

👎

Formula

✖

Equity Build up Rate

Formula

`"EBUR" = "EBU"_{"1 year"}/"YCE"`

Example

`"0.09127"="575000"/"6300000"`

Calculator

LaTeX

Reset

👍

Equity Build up Rate Solution

STEP 0: Pre-Calculation Summary

Formula Used

Equity Build Up Rate = Year One Equity Build Up/Year Capital Expenses
EBUR = EBU_{1 year}/YCE
This formula uses 3 Variables

Variables Used

Equity Build Up Rate - Equity Build Up Rate refers to the annual percentage increase in an asset's equity or value over time, typically due to principal repayments or property appreciation.
Year One Equity Build Up - Year One Equity Build Up is the increase in an asset's value or equity during the first year of ownership or investment.
Year Capital Expenses - Year Capital Expenses are costs incurred for acquiring, improving, or maintaining assets within a specific fiscal year.

STEP 1: Convert Input(s) to Base Unit

Year One Equity Build Up: 575000 --> No Conversion Required
Year Capital Expenses: 6300000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

EBUR = EBU_{1 year}/YCE --> 575000/6300000

Evaluating ... ...

EBUR = 0.0912698412698413

STEP 3: Convert Result to Output's Unit

0.0912698412698413 --> No Conversion Required

FINAL ANSWER

0.0912698412698413 ≈ 0.09127 <-- Equity Build Up Rate

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Mortgage and Real Estate » Equity Build up Rate

Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Aashna

IGNOU (IGNOU), India

Aashna has verified this Calculator and 25+ more calculators!

< 25 Mortgage and Real Estate Calculators

Monthly Mortgage Payment

Go Monthly Payment = (Mortgage Amount*Interest Rate*(1+Interest Rate)^Compounding Periods)/((1+Interest Rate)^Compounding Periods-1)

Long Term Capital Gain

Go Long Term Capital Gain = Final Sale Price-Indexed Cost of Acquisition-Indexed Cost of Improvement-Cost of Transfer

Short Term Capital Gain

Go Short Term Capital Gain = Final Sale Price-Cost of Acquisition-Home Improvement Cost-Cost of Transfer

Effective Gross Income

Go Effective Gross Income = Potential Gross Rental Income+Other Income-Allowances for Vacancies and Bad Debts

Net Rental Yield

Go Net Rental Yield = ((Annual Rental Income-Annual Expenses)*(1/Property Value))*100

Cost Approach Appraisal

Go Property Value = Reproduction Cost-Depreciation+Value of Land

Gross Potential Rent

Go Gross Potential Rent = Number of Units Available for Rent*Annualised Market Rent

Qualifying Ratio

Go Debt to Income Ratio = (Total Monthly Debt Payments/Gross Monthly Income)*100

Vacancy Rate

Go Vacancy Rate = (Vacant Units in the Building*100)/Total Units in the Building

70 Percent Rule

Go Maximum Buying Price = (After Repair Value*0.7)-Estimated Repair Costs

Gross Income Multiplier

Go Gross Income Multiplier = Property Sale Price/Effective Gross Income

Gross Rent Multiplier

Go Gross Rent Multiplier = Property Value/Potential Gross Rental Income

Gross Rental Income

Go Potential Gross Rental Income = Property Value/Gross Rent Multiplier

Loan to Value Ratio

Go Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100

Price per Square Foot

Go Price per Square Foot = Property Sale Price/Total Square Footage

Gross Rental Yield

Go Gross Rental Yield = (Annual Rental Income/Property Value)*100

Price to Rent Ratio

Go Price to Rent Ratio = Median Home Price/Median Annual Rent

Down-Payment Amount

Go Down Payment Amount = Final Sale Price*Percentage Payment

Rental Yield

Go Rental Yield = (Annual Rental Income/Property Value)*100

Land to Building Ratio

Go Land to Building Ratio = Area of Land/Area of Building

Commission Value

Go Commission Value = Commission Rate*Final Sale Price

Floor Area Ratio

Go Floor Area Ratio = Gross Floor Area/Total Lot Size

Property Tax Rate

Go Property Tax Rate = Assessed Value*Mill Rate

Debt Ratio

Go Debt Ratio = Total Debt/Total Assets

Annual Rental Income

Go Annual Rental Income = Monthly Rental Income*12

Equity Build up Rate Formula

Equity Build Up Rate = Year One Equity Build Up/Year Capital Expenses
EBUR = EBU_{1 year}/YCE

What is Equity Build up Rate ?

The Equity Build-Up Rate represents the annualized percentage growth in an asset's equity or value over time, usually due to a combination of factors such as principal repayments and property appreciation. In real estate, equity build-up often occurs as mortgage payments are made, reducing the loan balance and increasing the owner's equity stake in the property. Additionally, if the property's market value appreciates, it further contributes to equity build-up. This rate is essential for investors and homeowners as it indicates the pace at which their ownership stake or net worth in the asset is increasing. A higher equity build-up rate implies faster wealth accumulation or equity growth, while a lower rate may prompt adjustments in investment strategies or property management to enhance equity growth potential.

How to Calculate Equity Build up Rate?

Equity Build up Rate calculator uses Equity Build Up Rate = Year One Equity Build Up/Year Capital Expenses to calculate the Equity Build Up Rate, The Equity Build up Rate refers to the annual percentage increase in an asset's equity or value over time, typically due to principal repayments or property appreciation. Equity Build Up Rate is denoted by EBUR symbol.

How to calculate Equity Build up Rate using this online calculator? To use this online calculator for Equity Build up Rate, enter Year One Equity Build Up (EBU_{1 year}) & Year Capital Expenses (YCE) and hit the calculate button. Here is how the Equity Build up Rate calculation can be explained with given input values -> 0.09127 = 575000/6300000.

FAQ

What is Equity Build up Rate?

The Equity Build up Rate refers to the annual percentage increase in an asset's equity or value over time, typically due to principal repayments or property appreciation and is represented as EBUR = EBU_{1 year}/YCE or Equity Build Up Rate = Year One Equity Build Up/Year Capital Expenses. Year One Equity Build Up is the increase in an asset's value or equity during the first year of ownership or investment & Year Capital Expenses are costs incurred for acquiring, improving, or maintaining assets within a specific fiscal year.

How to calculate Equity Build up Rate?

The Equity Build up Rate refers to the annual percentage increase in an asset's equity or value over time, typically due to principal repayments or property appreciation is calculated using Equity Build Up Rate = Year One Equity Build Up/Year Capital Expenses. To calculate Equity Build up Rate, you need Year One Equity Build Up (EBU_{1 year}) & Year Capital Expenses (YCE). With our tool, you need to enter the respective value for Year One Equity Build Up & Year Capital Expenses and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search