Net Asset Value Calculator Formula

Understand the math behind the net asset value calculator. Each variable explained with a worked example.

Use the Net Asset Value Calculator

Formulas Used

Net Asset Value

nav = total_assets - total_liabilities

Total Assets

total_asset_value = total_assets

Leverage Ratio

leverage_ratio = (total_liabilities / total_assets) * 100

Variables

VariableDescriptionDefault
total_property_valuesTotal Property Values(USD)1500000
cash_and_reservesCash and Reserves(USD)50000
total_liabilitiesTotal Liabilities (Loans)(USD)900000
total_assetsDerived value= total_property_values + cash_and_reservescalculated

How It Works

Net Asset Value for Real Estate

NAV represents the total equity in a real estate portfolio after subtracting all debts from total asset values.

Formula

NAV = Total Assets - Total Liabilities

Where Total Assets = Property Values + Cash and Reserves

Uses

  • Track portfolio equity over time
  • Evaluate REIT shares (NAV per share)
  • Determine borrowing capacity for portfolio expansion
  • Measure overall financial health of real estate holdings

    • Worked Example

    A portfolio with $1,500,000 in properties, $50,000 cash, and $900,000 in loans.

    total_property_values = 1500000cash_and_reserves = 50000total_liabilities = 900000
    1. 01Total assets: $1,500,000 + $50,000 = $1,550,000
    2. 02NAV: $1,550,000 - $900,000 = $650,000
    3. 03Leverage ratio: $900,000 / $1,550,000 x 100 = 58.1%
    4. 04The portfolio has $650,000 in equity with 58.1% leverage

    Ready to run the numbers?

    Open Net Asset Value Calculator