Commercial property underwriting
Know what the building carries.
Model rent, vacancy, operating expenses, debt coverage, and cash before tax without confusing NOI with take-home cash.
Live deal pulseCash-flow positive
Monthly cash before tax
$3,424.49
Year-1 NOI
$104,704.00
01 / Property
Start with the building.
Price, area, use, and rent are the physical story behind the income line.
Property and income
Use asking rent per square foot on an annual basis. The calculator keeps commercial income separate from residential monthly-rent assumptions.
sq ft
/sq ft
Example: $18 means $18 per rentable square foot per year.
%
Applied before expenses so the result reflects effective income, not a fully occupied fantasy.
/year
Parking, signage, storage, or other income.
/year
Tenant recoveries such as CAM or utilities.
02 / Income
Price the opportunity.
Separate potential rent from effective income so vacancy and credit loss stay visible.
Operating expenses
These are property-level expenses. Mortgage payments are deliberately excluded from NOI.
/year
/year
/year
/year
/year
/year
% of effective income
03 / Costs
Let the building pay its bills.
Operating expenses and financing are separate lines for a reason. Keep NOI honest before you judge cash flow.
Financing assumptions
Financing affects cash flow and DSCR, but not the cap rate.
%
%
years
% of price