Commercial RE Calculator

Professional-grade investment analysis for serious investors

Scenario Manager

Click a scenario to switch inputs · Quick-populate buttons adjust rent ±5-10%, vacancy ±3-5%, expenses ±5%, exit cap ±0.5%

Asset Type

Property Name / Address

Gross Building Area (SF)

Net Rentable Area (SF)

Total Units

Year Built

Purchase Price

Closing Costs

Acquisition Fee

Value-Add / Repositioning Deal

Loan Type

Loan-to-Value (LTV)65%

40%80%

Loan: $1.0MEquity: $594K

Interest Rate

Loan Term

Amortization (yrs)

Balloon payment at maturity: $812K

Interest-Only Period0 yrs

0 yrs10 yrs

Origination Fee

Prepayment

Second Lien / Mezzanine

8 units · $137K/yr potential

# Units

Current Rent

Market Rent

Escalation %

Occupancy %

+$100/unit upside

Currently rented below market

# Units

Current Rent

Market Rent

Escalation %

Occupancy %

+$150/unit upside

Currently rented below market

Stabilized Physical Vacancy

Expected long-run % of NRA that will be vacant. This is the ongoing stabilized assumption — value-add ramp is set in the Acquisition section.

Credit Loss

% of rent lost to tenant non-payment or bad debt. Typically 0.5–2%.

⚠

Negative Leverage Detected

Your cap rate (4.6%) is below your mortgage rate. Debt is reducing your returns — consider a lower LTV or better price.

Return Metrics

Levered IRR

Internal rate of return on your equity investment, after financing and taxes.

0.8%

After debt & tax

Below Target

Unlevered IRR

Return on the full property value, ignoring how it's financed.

5.1%

⚠ Debt hurts by 4.4%

Equity Multiple

Total cash distributions divided by your equity invested.

1.06×

Total return / equity

Cash-on-Cash

Annual cash flow as a % of your equity invested. Year 1 and Year 3 shown.

-2.1%

Yr 3: -1.1%

Risk & Lending Metrics

DSCR

Debt Service Coverage Ratio: NOI ÷ Annual Debt Service. Agency/CMBS lenders typically require ≥ 1.25; some bank lenders accept ≥ 1.20. Green threshold is 1.25.

0.86

Stabilized: 0.86

Below 1.0

Debt Yield

Year 1 NOI divided by loan amount. Lenders typically require ≥ 8–10%.

7.1%

NOI / loan amount

Break-Even Occupancy

(OpEx + Debt Service) ÷ Gross Potential Rent. The occupancy level at which you break even.

102.9%

Cushion: -2.9%

Cap Rates

Going-in4.6%

Stabilized4.6%

Exit—

Property Performance

Monthly Revenue

Average monthly effective gross income in Year 1 (after vacancy and credit loss).

$11K

Year 1 EGI ÷ 12

Monthly Costs

Average monthly operating expenses plus debt service in Year 1.

$12K

OpEx + Debt Service

Monthly Net Cash Flow

Average monthly net cash flow after all expenses, debt service, and taxes in Year 1.

$-1K

After tax, Year 1

NOI (Year 1)

Net Operating Income = EGI − Operating Expenses (before debt service).

$74K

Stabilized: $74K

Eff. Gross Income

$129K

GPR minus vacancy & credit loss

Avg Unit Rent

Average asking rent per unit (GPR ÷ 12 ÷ total units). Uses gross potential rent before vacancy.

$1,425

per unit per month (GPR basis)

Comparables

Price/SF$200

Price/Unit$200,000

Required Equity$594K

Cumulative break-even: Yr 7

Type	Units	Current Rent	Market Rent	Occupancy	Annual Income
1BR	4	$1,250/mo	$1,350/mo	95%	$60K
2BR	4	$1,600/mo	$1,750/mo	92%	$77K