## 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 = EBU1 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 = EBU1 year/YCE --> 575000/6300000
Evaluating ... ...
EBUR = 0.0912698412698413
STEP 3: Convert Result to Output's Unit
0.0912698412698413 --> No Conversion Required
0.0912698412698413 0.09127 <-- Equity Build Up Rate
(Calculation completed in 00.004 seconds)
You are here -
Home »

## Credits

Created by Keerthika Bathula
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
Monthly Payment = (Mortgage Amount*Interest Rate*(1+Interest Rate)^Compounding Periods)/((1+Interest Rate)^Compounding Periods-1)
Long Term Capital Gain
Long Term Capital Gain = Final Sale Price-Indexed Cost of Acquisition-Indexed Cost of Improvement-Cost of Transfer
Short Term Capital Gain
Short Term Capital Gain = Final Sale Price-Cost of Acquisition-Home Improvement Cost-Cost of Transfer
Effective Gross Income
Effective Gross Income = Potential Gross Rental Income+Other Income-Allowances for Vacancies and Bad Debts
Net Rental Yield
Net Rental Yield = ((Annual Rental Income-Annual Expenses)*(1/Property Value))*100
Cost Approach Appraisal
Property Value = Reproduction Cost-Depreciation+Value of Land
Gross Potential Rent
Gross Potential Rent = Number of Units Available for Rent*Annualised Market Rent
Qualifying Ratio
Debt to Income Ratio = (Total Monthly Debt Payments/Gross Monthly Income)*100
Vacancy Rate
Vacancy Rate = (Vacant Units in the Building*100)/Total Units in the Building
70 Percent Rule
Maximum Buying Price = (After Repair Value*0.7)-Estimated Repair Costs
Gross Income Multiplier
Gross Income Multiplier = Property Sale Price/Effective Gross Income
Gross Rent Multiplier
Gross Rent Multiplier = Property Value/Potential Gross Rental Income
Gross Rental Income
Potential Gross Rental Income = Property Value/Gross Rent Multiplier
Loan to Value Ratio
Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100
Price per Square Foot
Price per Square Foot = Property Sale Price/Total Square Footage
Gross Rental Yield
Gross Rental Yield = (Annual Rental Income/Property Value)*100
Price to Rent Ratio
Price to Rent Ratio = Median Home Price/Median Annual Rent
Down-Payment Amount
Down Payment Amount = Final Sale Price*Percentage Payment
Rental Yield
Rental Yield = (Annual Rental Income/Property Value)*100
Land to Building Ratio
Land to Building Ratio = Area of Land/Area of Building
Commission Value
Commission Value = Commission Rate*Final Sale Price
Floor Area Ratio
Floor Area Ratio = Gross Floor Area/Total Lot Size
Property Tax Rate
Property Tax Rate = Assessed Value*Mill Rate
Debt Ratio
Debt Ratio = Total Debt/Total Assets
Annual Rental Income
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 = EBU1 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 (EBU1 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 = EBU1 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 (EBU1 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.
Let Others Know