Investor tools
Run the numbers.Then run the deal.
A working underwriting calculator for commercial and industrial property. Enter the income, expenses, and financing, and see NOI, cap rate, cash-on-cash, and DSCR update as you type.
Deal calculator
Underwrite it in one screen.
Everything is annual unless noted. Nothing you enter leaves your browser.
Results
- Net operating income (NOI)
- $114,700
- Cap rate
- 7.65%
- Cash-on-cash return
- 5.29%
- DSCR
- 1.29
- Effective gross income
- $176,700
- Annual cash flow before tax
- $25,646
- Loan amount
- $1,050,000
- Monthly debt service
- $7,421
- Annual debt service
- $89,054
- Total cash invested
- $485,000
- Gross rent multiplier
- 8.06
- Operating expense ratio
- 35.09%
- Break-even occupancy
- 81.21%
How each number works
The formulas behind the fields.
Net operating income (NOI)
Effective gross income − operating expenses
Income after vacancy and operating costs, before debt service, capital expenditure, depreciation, and income tax. It is the figure most commercial valuations start from.
Cap rate
NOI ÷ purchase price
The unlevered annual return the property produces at the price paid. Useful for comparing assets, but only against genuinely comparable use, location, and lease structure.
Cash-on-cash return
Annual pre-tax cash flow ÷ total cash invested
What the cash you actually put in returns each year once debt service is paid. Sensitive to leverage, so it moves sharply with the down payment.
DSCR
NOI ÷ annual debt service
How many times the income covers the loan payments. Commercial lenders commonly look for 1.20–1.35 or better, though requirements vary by lender and asset.
Break-even occupancy
(Operating expenses + debt service) ÷ gross potential income
The occupancy level at which the property covers its costs. The gap between this and realistic market occupancy is your margin for error.
Read this before you rely on it
This calculator is an estimating tool for general information only. It is not an appraisal, a lending decision, or financial, tax, or legal advice, and it does not account for capital expenditure, reserves, income tax, depreciation, loan fees, or rate changes. Verify every assumption independently and consult qualified professionals before making a decision.
Have a property in mind?
Bring the numbers to a conversation.
Send the figures you have and Chirag will tell you what the calculator cannot: whether the assumptions behind them hold up for that asset, in that market, at that price.