Skip to content

    Under active development. New calculators and features ship every week. Everything currently runs free while the site matures — pricing pages are a preview, checkout is not open yet.

    Search ⌘K
    Calculates locally in your browser · NOI, cap rate and levered cash flow
    Real estate / Underwriting

    Property pro forma

    The one-page underwriting: gross rent to effective income to NOI, then the cap rate, the loan, the cash-on-cash and the DSCR. Change the price and watch the cap rate you are actually buying.

    EGI$1.00MLTV65%LeveredPositive
    NOI
    $650.0k
    After vacancy and opex
    Cap rate
    6.50%
    on $10.00M
    Cash-on-cash
    6.61%
    equity $3.50M
    DSCR
    1.55×
    debt service $418.7k
    Pro forma
    Gross rent to NOI to levered cash flow.
    Pro forma
    LineValue
    Gross potential rent$1.00M
    Less vacancy and credit loss-$50.0k
    Other income$50.0k
    Effective gross income$1.00M
    Operating expenses-$350.0k
    Net operating income$650.0k
    Annual debt service-$418.7k
    Cash flow$231.3k

    NOI is before capital expenditure, tenant improvements and leasing commissions.

    Inspect the model
    Choose a quick result view, a scaled comparison, or the complete diagnostic set.
    Cap rate against price
    Same NOI, different price: the cap rate is the yield you are buying.
    Cap rate against price0.0002.084.166.248.3210.40$7M$7M$8M$8M$9M$9M$10M$10M$11M$11M$12M$12M$13M$13MCap rate (%)
    Canonical equations
    The exact relationships implemented by this engine.

    EGI − operating expenses · Before capex, TI and leasing commissions.

    NOI / price · The entry yield.

    levered cash flow / equity · Pre-tax.

    finance methodology

    A clear path from inputs to results.

    The one-page underwriting: gross rent to effective income to NOI, then the cap rate, the loan and the cash the owner actually keeps.

    Step-by-step methodWorked exampleAssumptions explained

    How to use

    1. Enter the rent, vacancy and operating expenses.
    2. Set the price, LTV, rate and amortisation.
    3. Read the cap rate, cash-on-cash and DSCR.

    The formula

    NOI=EGI−opex,cap=NOIpriceNOI = EGI - opex, \qquad cap = \frac{NOI}{price}

    Reference: Standard real estate underwriting — NOI before capex, TI and leasing commissions (Appraisal Institute, The Appraisal of Real Estate).

    Worked example

    $1M rent, $350k opex, $10M price

    Inputs
    • 5% vacancy, 65% LTV at 5% over 30 years.
    Calculation path
    1. 1

      EGI 1.0M, NOI 650k, cap 6.5%. Loan 6.5M, debt service 419k, cash flow 231k on 3.5M of equity.

    Result

    6.5% cap, 6.6% cash-on-cash, 1.55× DSCR.

    Interpreting the result

    The cap rate is the yield you buy at entry. Leverage raises cash-on-cash when the cap rate exceeds the mortgage constant, and lowers it when it does not.

    Assumptions & limitations

    • NOI before capex and leasing costs.
    • Level monthly debt service.
    • Pre-tax cash-on-cash.
    • No rent growth or rollover.

    Frequently asked questions

    Why is cap rate not the return?

    It ignores debt, capex and growth; it is an entry yield, not an IRR.

    Does positive leverage always help?

    Only when the cap rate exceeds the loan constant; otherwise debt dilutes the return.

    What DSCR do lenders want?

    1.20–1.35× for most commercial loans.

    What is missing from NOI?

    Capital expenditure, tenant improvements and leasing commissions — all real costs.

    Methodology last reviewed 2026-10-22. Results are informational and not financial or engineering advice — see our disclaimer.