Pro Tier Module
Cap Rate / NOI Analyzer
Underwrite an income property in the browser - exact NOI, both cap-rate views, and the lender ratios.
See it run - a worked example, 100% in this browser tab
The problem
Brokers, appraisers, lenders, and investors juggle rents, vacancy, expenses, price, and financing across spreadsheets where one mislabeled line - say debt service slipped into operating expenses - quietly distorts NOI, the cap rate, and the whole deal.
The local-first solution
This plugin computes the full income-capitalization build-up with exact f64 arithmetic over cited appraisal and finance identities, entirely client-side, with every figure a deal-specific input you supply and nothing uploaded to anyone's cloud.
What it does
Effective Gross Income and NOI build-up (EGI = GPI + other income - vacancy; NOI = EGI - operating expenses, debt service correctly excluded)
Direct capitalization both ways: going-in cap rate on an entered price (R = NOI / Value) and indicated value at a target cap rate (Value = NOI / R)
Debt-Service Coverage Ratio (NOI / annual debt service) for lender underwriting
Before-Tax Cash Flow and Cash-on-Cash return (BTCF / total cash invested)
Gross Rent Multiplier and Operating Expense Ratio
Debt service entered directly, as monthly P&I, or amortized from loan amount, rate, and term via the level-payment annuity formula
Honest scope
All arithmetic is exact f64 over the cited income-capitalization identities, with no year- or jurisdiction-indexed constants - every figure is a deal-specific input, so the result is only as good as the rents, vacancy, expense, and cap-rate numbers you enter. This is direct capitalization only: it does not model a multi-year DCF/IRR, reversion, lease-up, expense recoveries, depreciation, or after-tax cash flow, and it is not investment, tax, appraisal, or financial advice (an appraisal must follow USPAP).
Authorities cited
- Appraisal Institute, "The Appraisal of Real Estate" (14th/15th ed.) - definitions of Net Operating Income (operating expenses exclude debt service, income tax, depreciation, and capital expenditures) and the income-capitalization approach.
- Direct-capitalization identity (IRV): Value = Income / Rate, equivalently Income = Value x Rate and Rate = Income / Value. Standard appraisal relationship; "The Appraisal of Real Estate", Direct Capitalization chapter.
- Cap rate definition: Capitalization Rate = Net Operating Income / Property Value (or purchase price for the going-in cap). CCIM Institute, "Introduction to Commercial Investment Real Estate Analysis (CI 101)".
- Effective Gross Income: EGI = Potential Gross Income + Other Income - Vacancy & Collection Loss. "The Appraisal of Real Estate", income & expense estimation.
- Cash-on-Cash return = Before-Tax Cash Flow / Total Cash Invested; Before-Tax Cash Flow = NOI - Annual Debt Service. CCIM CI 101 cash-flow model.
- Debt-Service Coverage Ratio (DSCR) = Net Operating Income / Annual Debt Service. Standard commercial-mortgage underwriting metric (e.g. lender minimums typically 1.20-1.25x).
- Gross Rent Multiplier = Sale Price (Value) / Gross (Potential) Rental Income; Operating Expense Ratio = Operating Expenses / Effective Gross Income. "The Appraisal of Real Estate", multipliers & ratios.
- Level-payment (fully amortizing) loan: PMT = P * i / (1 - (1 + i)^(-n)), i = monthly rate, n = number of monthly payments. Standard ordinary-annuity payment formula (Brealey, Myers & Allen, "Principles of Corporate Finance").
Run your deal now
Underwrite an income property in your browser - nothing is uploaded to anyone's cloud. Save the run to your Sandbox workspace, attach it to a Worklog deal file, or route the results into a Gate client portal.