Underwriting Calculator

The Underwriting Calculator helps you determine what price to offer for a property based on your target cap rate.

Number of Units: Enter the total number of rental units in the property.

Average Rent: Enter the average monthly rent per unit. The calculator will multiply this by the number of units.

Occupancy Rate: Typical occupancy rates range from 90-95%. This accounts for vacancy and turnover.

Target Cap Rate: Your desired return on investment. Higher cap rates mean lower offer prices. Typical multifamily cap rates range from 5-10% depending on market and property quality.

Formula: The calculator uses the cap rate formula backwards: Offer Price = Annual NOI ÷ Target Cap Rate. This tells you the maximum price you should pay to achieve your target return.