Multifamily Investment Calculator
Estimate cap rate, loan payments, DSCR, annual cash flow, cash-on-cash return and price per unit before you tour or underwrite a multifamily property.
Property analysis and financing
Enter annual figures. Results update as you type.
Property
Annual income
Applied to gross rental income.
Annual operating expenses
Financing
How to use this multifamily investment calculator
Enter the property price, unit count, gross rent, vacancy, other income and annual operating expenses. Then add the proposed down payment, interest rate, amortization period and upfront costs. The calculator derives NOI and updates the initial return and financing metrics immediately. It is designed for a fast first screen; detailed underwriting should also review the rent roll, leases, utility responsibilities, repairs, reserves and capital improvements.
Cap rate
Cap rate compares a property’s annual NOI with its purchase price, without including financing.
NOI ÷ purchase price
DSCR
Debt service coverage ratio compares NOI with estimated annual principal and interest payments.
NOI ÷ annual debt service
Cash-on-cash return
This estimate compares annual cash flow after debt service with the cash invested at acquisition.
Cash flow ÷ cash invested
Start with reliable net operating income
NOI is rental and other property income minus normal operating expenses. It generally excludes mortgage payments, depreciation and income taxes. A realistic NOI should account for vacancy, management, maintenance, insurance, property taxes, utilities paid by the owner and recurring operating costs. Learn more in our guide to net operating income.
Why financing changes the investor’s return
Two buyers can purchase the same building at the same cap rate and receive different cash-on-cash returns because their down payments, interest rates, amortization schedules and closing costs differ. DSCR also helps show whether projected NOI provides room above the estimated loan payment. Actual lender underwriting may use different expense assumptions, reserves and minimum coverage standards.
Evaluating a property in Hagerstown or Washington County? Review active commercial and multifamily listings, read the commercial property valuation guide, or learn about our multifamily real estate brokerage services.
Multifamily calculator questions
What is a good cap rate for a multifamily property?
There is no single cap rate that fits every property. Location, condition, unit mix, tenant demand, rents, expenses and risk all affect how investors compare returns. Use cap rate together with the building’s physical condition and income documentation.
Does the cap rate include the mortgage payment?
No. Cap rate uses NOI and purchase price before financing. The calculator separately estimates debt service, DSCR, cash flow and cash-on-cash return.
What expenses should be included in NOI?
Typical operating expenses can include property taxes, insurance, management, repairs, owner-paid utilities, grounds care and other recurring property costs. Mortgage payments and income taxes are generally excluded.
Why is DSCR important to a multifamily buyer?
DSCR shows how projected property income compares with estimated debt payments. Buyers and lenders use it as one measure of the property’s ability to support financing, but lender methods and requirements vary.
This calculator provides educational, preliminary estimates only. Results are not a loan quote, appraisal, tax advice or investment recommendation. Confirm property information and financing terms with the appropriate professionals.