Model unit mixes, rents, and vacancies to forecast dependable income accurately today. Track expenses, debt service, and returns with clear outputs for construction planning.
Add unit types, then tune vacancy, expenses, and optional financing. The form uses a responsive grid: three columns on large screens, two on smaller screens, and one on mobile.
This sample shows a typical unit mix with reasonable assumptions for vacancy and expenses.
| Unit type | Count | Monthly rent | Annual rent |
|---|---|---|---|
| Studio | 2 | 450 | 10,800 |
| 1 Bedroom | 4 | 650 | 31,200 |
| 2 Bedroom | 2 | 850 | 20,400 |
| Total | 8 | — | 62,400 |
The calculator uses standard rental underwriting relationships.
Start by listing every unit type and count. A diversified mix limits exposure to one renter segment. Use current comparable rents and apply a conservative premium only when finishes, parking, or views justify it. Confirm totals against expected lease-up timing and seasonal demand in your area. Track rent per unit to identify underperforming layouts and prioritize upgrades.
Vacancy is not only empty units; it also reflects make-ready time and marketing gaps. For small buildings, one vacant unit can shift annual results sharply. Use a rate that matches historic occupancy, then stress-test higher vacancy during renovation or utility interruptions common on active construction sites. For new builds, include initial absorption periods and leasing commissions.
Credit loss captures late payments, write-offs, and move-in incentives. Even well-managed properties see occasional delinquency. If your lease-up plan includes one free month or reduced deposits, reflect that impact here. A small percentage protects your cash forecast from optimistic collections assumptions.
Parking, storage, pet fees, laundry, and short-term fees can raise effective income without changing base rent. Record other income monthly so it scales to annual reporting. Compare add-on pricing to nearby properties, and document what is included versus billed to avoid double counting utilities or services.
Repairs and capital reserves are modeled as percentages of effective income. Use repairs for routine work orders and capital reserves for longer-life items like roofs, boilers, and exterior finishes. Management and admin percentages help standardize budgeting when unit counts change across phases of a project. Separating them clarifies what can be deferred and what cannot.
Net operating income equals effective income minus operating expenses, before financing. NOI supports cap-rate comparisons and helps explain value changes from rent upgrades or expense cuts. If cap rate looks unusually high or low, re-check vacancy, taxes, and insurance inputs for realism. Pair NOI with per-unit metrics for clear communication to partners.
When loan details are provided, the calculator estimates amortized debt service and compares it to NOI using DSCR. Many lenders prefer DSCR above about 1.20, but requirements vary. Cash flow before tax also subtracts other debt payments, helping you plan reserves during stabilization.
Break-even occupancy approximates the percent of gross rent needed to cover operating costs and debt. Lower is safer when utilities, permits, or supplier delays occur. Use this metric to decide whether to adjust rents, trim expenses, or stage renovations so occupancy remains above break-even. Export CSV or PDF snapshots.
Q1. What does gross potential rent represent?
A. Gross potential rent is the rent collected if every unit is leased at the entered monthly rents for a full year, before vacancy, credit loss, and other income adjustments.
Q2. Why are some expenses based on EGI?
A. Using effective gross income for percentage-based reserves keeps repairs, capital reserves, and management aligned with the actual income level, which helps when unit counts or rents change during a project.
Q3. How should I choose vacancy and credit loss rates?
A. Use local historical occupancy if available. For renovations or lease-up, test higher vacancy and modest credit loss to reflect turnover, marketing time, concessions, and occasional delinquency.
Q4. Is NOI the same as profit?
A. No. NOI excludes financing, income taxes, and owner-specific items. It measures property operating performance and is commonly used for valuation and comparing buildings with different loan structures.
Q5. What does DSCR tell me?
A. DSCR compares NOI to total annual debt obligations entered. A higher DSCR indicates more cushion to pay debt during vacancies or unexpected repairs; lender targets vary by market and property type.
Q6. How is cash-on-cash return calculated?
A. Cash-on-cash return divides annual cash flow before tax by estimated equity invested, which is total project cost minus loan amount. It helps compare opportunities when financing and rehab budgets differ.
Q7. Can I export results for reporting?
A. Yes. After calculating, use the CSV download for spreadsheets and the PDF download for shareable summaries. Both exports include key results, unit mix, and the main assumptions used.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.