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How to use
- Enter Annual maintenance.
- Enter Annual management.
- Enter Annual taxes/fees.
- Enter Annual insurance.
- Enter Annual utilities.
- Enter Other operating costs.
- Calculate, then verify which items are included in the definition before comparing.
How it is calculated
Annual operating cost = sum of entered operating-cost items
Example
Items of 12,000, 9,000, 6,000, 4,000, 5,000 and 4,000 total 40,000 annually or about 3,333.33 monthly.
Important notes
Exclude debt service when measuring operating cost before financing, and avoid duplicating fees already bundled into another service.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Annual total | 12000 + 9000 + 6000 + 4000 + 5000 + 4000 | 40,000 |
| Monthly average | 40000 ÷ 12 | 3,333.333333 |
Frequently asked questions
Is debt service an operating cost?
In many property analyses it is not. Add it separately when calculating post-financing cash flow.
Are these rates legally required?
No. This is a general math tool; actual fees, rates and rules vary by contract, provider and jurisdiction.
How should two scenarios be compared?
Use the same period and cost definitions, and change one variable at a time where possible.