Real estate calculators
Deal snapshot
Quick valuation checks and basic return metrics.
Net yield & cash-on-cash
What it measures
This calculator gives the three standard income returns. Gross yield is the raw return before costs. Net initial yield (NIY) is the real return after operating costs, and the figure properties are usually valued on. Cash-on-cash (CoC) return is the return on your own deposit (equity) after paying the mortgage.
When to use it
Use this for every deal. It shows whether a property pays enough income to justify the risk.
Watch out for
High yields often signal high risk, such as short leases or weak tenants. A 'cheap' 10% yield might be expensive if the tenant leaves in 6 months.
Net yield & cash-on-cash
Check whether a deal's basic income returns stack up.
In line with typical market yields.Market standard: 4–6%+
Moderate cash return.Target: above 8–10%
Residual land valuation
What it measures
This is the standard method for valuing development sites. It calculates what a developer can afford to pay for the land by working backwards from the value of the finished building (GDV), subtracting all costs and the developer's required profit margin.
When to use it
Use this when buying land or a teardown property. If the asking price is $1M but this calculation says $500k, the project does not work at that price.
Watch out for
The result is highly sensitive. A 5% drop in GDV or a 5% rise in build costs can wipe out 50% of the land value. Always run scenarios.
Residual land valuation
Estimate what a site is worth to a developer.
5-year mini-DCF
What it measures
A discounted cash flow (DCF) models the deal over five years instead of looking only at year one. It calculates the IRR (internal rate of return), accounting for rent growth, loan payments, and the profit from selling the building at the end.
When to use it
Use this for every serious valuation. It tells you whether the deal works over the long term, not just today.
Watch out for
The output is only as good as the inputs. Small changes to the exit cap rate can swing the IRR sharply. Be conservative with your exit assumptions.
Read the guide: IRR Explained: The Metric Behind the Returns
5-year mini-DCF
Calculate IRR and total profit over a five-year hold.
Target achieved.
Yield sensitivity matrix
What it measures
A sensitivity matrix (data table) makes risk visible. It shows how your net yield changes if you pay more or less, or if rent ends up higher or lower.
When to use it
Use this to stress-test your assumptions. If the deal only works at exactly the asking price and exactly the pro-forma rent, it is fragile.
Watch out for
Look for the red zone. If a small drop in rent or a slightly higher price turns the deal red, you have little margin of safety.
Yield sensitivity matrix
See how yield changes as price and rent move.
Gross rent estimator
What it measures
A simple calculator to turn monthly unit rents into an annual gross figure. This is often the starting point for all other analysis.
When to use it
Use this when an agent tells you 'It has 10 units renting for about $1,200 each' and you need the annual figure for your yield calculation.
Watch out for
Always check whether the monthly rent is actual passing rent or pro-forma (projected future) rent.
Gross rent estimator
Quickly calculate annual rent from monthly unit inputs.
Price per area
What it measures
This calculates the cost per square foot, square meter or unit (door). It strips away the income and lease layer and looks at the physical value of the asset.
When to use it
Use this to compare similar properties. If you are buying a building for $500/sq ft but it would cost $400/sq ft to build new, you might be overpaying regardless of the yield.
Watch out for
Do not ignore condition. A low price per unit is often a trap if the building needs major renovation (capex) right away.
Price per area
A simple way to compare similar properties.
Gross rent multiplier (GRM)
What it measures
The gross rent multiplier (GRM) is a rule-of-thumb valuation metric. It measures how many years of gross rent it takes to pay for the property. It is crude because it ignores expenses, but it is very fast.
When to use it
Use it to quickly filter through dozens of listings in the same neighborhood. If most 4-plexes trade at 12x rent and you see one at 8x, it's worth investigating.
Watch out for
GRM ignores operating costs. A building with a low GRM might have huge utility bills or insurance costs that make it a bad deal despite the 'cheap' multiplier.
Gross rent multiplier (GRM)
A quick rule-of-thumb valuation metric.
Priced around the market average.Target: below 12–15x
Cap rate check
What it measures
The cap rate (capitalization rate) is the industry standard for valuation. It is essentially the net initial yield, viewed as a measure of risk: a lower cap rate means lower risk and a higher price. This tool checks whether the price you are paying implies a cap rate in line with the market.
When to use it
Use this to sanity-check an asking price. If the seller wants $2M and the market cap rate is 6%, this tells you whether $2M is realistic.
Watch out for
Cap rates vary wildly by location and asset class. A 4% cap is normal for a prime NYC apartment but terrible for a rural warehouse.
Cap rate check
Compare the cap rate you are paying with the market rate.
Maximum bid price
What it measures
This is a reverse (goal seek) calculator. Instead of asking what the yield is, you ask what price to pay to reach your target yield.
When to use it
Use this before making an offer. If you know you need a 6% return to satisfy your investors (or bank), this tells you your maximum purchase price.
Watch out for
Be realistic with your target yield. If you input a 10% yield in a 5% market, the calculator will tell you to bid half the asking price, which won't be accepted.
Maximum bid price
Find the most you can pay and still hit your target yield.
Paying more pushes the yield below your target.
Equity multiple
What it measures
The equity multiple shows how much cash you get back for every dollar you put in. A 2.0x multiple means you doubled your money. It measures total profit rather than speed of profit (IRR).
When to use it
Use this to understand the total wealth a long-term hold generates.
Watch out for
It ignores time. Doubling your money (2.0x) is excellent if it takes 36 months, but poor if it takes 240 months. Always view it alongside IRR or yield.
Equity multiple
See how many times your money comes back.
Rent vs. buy
What it measures
This compares the true cost of owning (down payment, buying costs of about 3%, mortgage payments and upkeep of about 1.2% a year, minus the equity you build) against renting an equivalent home over your time horizon.
When to use it
Use it before any home purchase, especially if you might move within 5–7 years. The shorter the horizon, the harder it is for buying to overcome its one-off transaction costs.
Watch out for
This model excludes the return you could earn investing the down payment elsewhere (opportunity cost). Adding it typically shifts the answer a few points toward renting. It also assumes smooth, positive appreciation.
Rent vs. buy
Compare which option builds more wealth over your time horizon.
Buying builds more wealth than renting over this horizon.Ahead by €176,201
Debt & risk
Lender covenants, stress tests, and leverage safety.
Mortgage amortization
What it measures
Shows how your equity grows as you pay down a mortgage. In the early years, most of each payment goes to interest. In later years, more of it repays principal and builds equity.
When to use it
Use it to see how amortization builds equity over the long term.
Watch out for
Equity grows slowly in the first five years. Selling early can hurt because you will have repaid very little of the debt.
Mortgage amortization
See how equity builds up over the loan term.
LTV & DSCR
What it measures
This checks the two main bank covenants. LTV (loan-to-value) limits how much of the purchase price is funded by debt. DSCR (debt service coverage ratio) checks that the property generates enough cash to pay the mortgage.
When to use it
Run this before speaking to a lender. It is how lenders assess your deal.
Watch out for
Interest-only loans flatter your DSCR because payments are lower. Check that the deal still works with principal and interest (amortization).
LTV & DSCR
Check whether the deal meets typical lender limits.
Typical bank leverage.Safe below 60%, maximum 75%
Acceptable, but with a limited buffer.Bank minimum 1.25x, safe above 1.50x
NOI needed to meet lender targets
- Bank minimum (1.25x)
- €60,030
- Safe level (1.50x)
- €72,036
Maximum loan size
What it measures
This reverse calculator estimates your borrowing capacity. Lenders usually lend the lower of two amounts: what the LTV limit allows, or what your cash flow (DSCR) can support. This tool finds that lending ceiling.
When to use it
Use this before making an offer, so you know how much debt you can count on.
Watch out for
Adding amortization (principal repayment) sharply reduces your borrowing capacity compared with an interest-only loan, because the monthly payments are higher.
Maximum loan size
Estimate how much you can borrow under DSCR and LTV limits.
Limited by the LTV test.
Interest rate stress test
What it measures
Shows what happens to your cash flow if interest rates rise: the direct cost to your bottom line and how much your DSCR margin shrinks.
When to use it
Important for variable-rate loans, or if you plan to refinance in the next one to three years.
Watch out for
A fixed rate still carries refinancing risk. Consider what happens if rates are 2% higher when your loan matures.
Interest rate stress test
See how higher interest rates affect cash flow.
Current DSCR
2.22x
Stressed DSCR
1.54x
Interest coverage (ICR)
What it measures
The interest coverage ratio (ICR) measures how easily your income covers the interest payments alone. It is similar to DSCR but excludes principal repayment.
When to use it
Commonly used for interest-only or bullet loans. Many banks set covenants based on ICR, for example a minimum of 2.0x.
Watch out for
A strong ICR can hide a repayment problem. You might have an ICR of 3.0x and still have no way to repay a large loan balance at maturity.
Interest coverage (ICR)
Check whether income covers interest payments, common for interest-only loans.
Healthy coverage.Target above 2.0x
Break-even ratio (BER)
What it measures
The break-even ratio (BER) shows the occupancy your building needs to cover operating expenses and mortgage payments. A BER of 80% means that if vacancy rises above 20%, you are paying out of pocket.
When to use it
Use this to measure downside protection. In a recession rents fall and vacancy rises, so check how much room you have before income stops covering costs.
Watch out for
Do not rely only on current rent. If current rents are above market, your break-even point may be higher than you think once you re-let at lower rates.
Break-even ratio (BER)
Find the occupancy you need to cover costs.
A safe margin for vacancy.Target below 80–85%
Mortgage constant
What it measures
The mortgage constant is annual debt service as a percentage of the loan amount. It reflects the full cost of your debt. Comparing it with the cap rate tells you whether debt is helping or hurting your return (positive or negative leverage).
When to use it
Use it when deciding whether to take on debt. If your mortgage constant is higher than your cap rate, every dollar you borrow lowers your cash-on-cash return.
Watch out for
Amortization raises the mortgage constant significantly. An interest-only loan might show positive leverage while an amortizing loan shows negative leverage on the same deal.
Mortgage constant
Compare the full cost of your debt with the property yield.
Negative leverage: debt reduces your return.Positive when cap rate exceeds mortgage constant
Leases & income
Tenant stability, vacancy analysis, and opex.
WAULT
What it measures
WAULT (weighted average unexpired lease term) is the average time left on your leases, weighted by how much rent each tenant pays. It shows how secure your income is.
When to use it
Check this when valuing a multi-tenant building. A 60-month WAULT is worth much more than a 24-month WAULT, even if the rent is the same today.
Watch out for
Watch for break options. If a tenant has a 120-month lease but can terminate after month 36, the effective WAULT is only 36 months (known as WAULT to break).
WAULT
Measure how secure the rental income is.
Secure long-term income.Target above 60 months
High risk: income depends heavily on a few tenants.Target below 40–50%
Vacancy impact
What it measures
Shows the full cash cost of an empty unit: the lost rental income plus the carrying costs (property taxes, insurance, service charges) you still pay while it is empty.
When to use it
Use during lease negotiations. It helps you decide whether it is cheaper to accept a lower offer now or hold out for a higher rent and risk a longer vacancy.
Watch out for
Many owners forget carrying costs. An empty unit does not just earn nothing; it costs you money every month.
Vacancy impact
Estimate the cash cost of a vacant period.
Effective rent
What it measures
Calculates the average rent actually received after incentives such as rent-free periods. Face rent is the figure in the lease; effective rent is what you actually collect.
When to use it
Use effective rent to compare deals. Deal A might have a higher face rent than deal B, but if deal A includes six months rent-free, it may be cheaper.
Watch out for
Valuers focus on effective rent. If you inflate the face rent but offer large incentives, the valuation will likely look through it.
Effective rent
Find the actual rent after rent-free periods.
Occupancy & vacancy rate
What it measures
Measures how much of your space is let. Occupancy is the share of space rented; vacancy is the share that is empty.
When to use it
Track this monthly. A sudden rise in vacancy can point to management issues or a softening market.
Watch out for
Distinguish economic vacancy (the tenant is in place but not paying) from physical vacancy (the unit is empty). This tool calculates physical vacancy.
Occupancy & vacancy rate
Check how much of a building or portfolio is let.
Typical market vacancy.Frictional about 5%, structural above 10%
Rent per m² / ft²
What it measures
Converts rent to a per square foot or per square meter basis, so you can compare small and large units on equal terms.
When to use it
Use this to check whether a rent is in line with the market. If you charge $20 per sq ft and the market rate is $30 per sq ft, the unit is under-rented and has upside potential.
Watch out for
Small units usually achieve a higher rent per unit of area than large ones (the quantum discount). A 10,000 sq ft warehouse will not rent at the same rate as a 500 sq ft unit.
Rent per m² / ft²
Compare unit rents against market averages.
Operating expense ratio (OER)
What it measures
The operating expense ratio (OER) measures operating efficiency. It shows what share of your income goes to running costs such as cleaning, insurance and utilities, before any mortgage payments.
When to use it
Use this to spot inefficiencies. If your OER is 50% but similar buildings run at 30%, you are overspending on operations.
Watch out for
OER varies by asset class. Triple net (NNN) leases have a very low OER because the tenant pays most costs, while hotels and serviced offices have a very high OER.
Operating expense ratio (OER)
See what share of income goes to operating costs.
A very efficient operation.Efficient below 30%, average 40%
Negotiation
Comparisons for lease renewals and improvements.
Discount vs. vacancy
What it measures
Helps you choose between two costly options: keeping a tenant by lowering their rent, or letting them leave and carrying an empty unit.
When to use it
Use during lease renewals, for example when a tenant asks for a 10% discount or says they will leave.
Watch out for
Vacancy usually costs more than owners expect. Three months of vacancy costs about the same as an 8% discount over three years. Owners who refuse a discount often lose more to vacancy.
Discount vs. vacancy
Compare lowering the rent with risking a vacant period.
Capital improvement payback
What it measures
Calculates the return on investment (ROI) for capital improvements such as solar panels, LED lighting or a lobby renovation.
When to use it
Use this to justify capital spending. If you spend $10,000 on LED lighting to save $2,000 a year, it shows how many months it takes to break even.
Watch out for
The payback period is simple but ignores added value. A lobby renovation may produce no direct savings, yet still raise the building's value by making it easier to let or sell.
Capital improvement payback
Check whether a renovation or upgrade, such as solar panels, pays off.
Indexation simulator
What it measures
Shows the effect of compounding on rent. Small differences in annual rent increases (indexation) add up to large differences in total income over a long lease.
When to use it
Use when negotiating rent reviews. If a tenant pushes for 2% annual increases instead of 3%, this shows how much income you give up over the lease term.
Watch out for
Small percentage changes matter. On a long lease, an extra 1% a year is often worth more than a higher starting rent.
Indexation simulator
Compare how two annual increase rates compound over time.
Cap & collar (rent review)
What it measures
Calculates a rent increase subject to cap and collar limits. A cap stops the rent rising above a maximum, which protects the tenant. A collar guarantees a minimum increase, which protects the landlord.
When to use it
Common in commercial leases linked to an inflation index such as CPI.
Watch out for
When inflation is high, the cap is very valuable to tenants. When inflation is low, the collar ensures the landlord still gets some growth.
Cap & collar (rent review)
Calculate a rent increase with minimum and maximum limits.