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What are the metrics used to calculate the property's Investment Payback Balance?
What are the metrics used to calculate the property's Investment Payback Balance?

This article will explain what the different metrics mean in the Investment Payback Balance section of the Property Page.

Adam Williams avatar
Written by Adam Williams
Updated over 6 years ago

The main metrics that are used to calculate the Investment Payback Balance are the following:

  • Adjusted Gross Revenue

The adjusted gross revenue is similar to the comparable rental income of the property (Gross Rental Revenue X Occupancy Rate).

For Airbnb properties, the adjusted gross revenue will also account for the cleaning fee that is collected from the tenant as well as the Airbnb hosting fee that you pay to Airbnb for hosting your property.

  • Total Expenses

The total expenses are the amount of recurring expenses + the mortgage payments that you will have to pay on a monthly basis.

  • Net Rent

The net rent is the amount of money left after paying your monthly expenses and before accounting for the taxes.

  • Property Tax

This is the amount of tax that you would have to pay each month for the property.

For Airbnb properties, this will be the Airbnb tax.

  • Cash Flow

The cash flow is the amount of money left after paying all expenses and taxes (the actual amount of money that the property will generate).

  • Startup Costs

This is the amount of money that you will have to pay once when you first purchase the property. These include the closing costs, renovation costs, installing new appliances or furniture...etc.

  • Investment Payback Balance

The investment payback balance is the amount of money you will have generated/lost up to the point of time that you're looking at.

Example: If the investment payback balance is -$5,000 after 3 months, it means that the property will have cost you $5,000 within the first 3 months. If the property's payback balance is $25,000 after 2 years, it means that the property will have generated $25,000 profits within 2 years.

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