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Open Real Estate Finance
Free calculator · Valuation & Returns
Valuation Sensitivity
Builds one-variable and two-variable direct-capitalization sensitivity tables showing how value moves as the cap rate and NOI change. Inputs are the base NOI, the base cap rate, and the step sizes for each variable.
Interactive Tool
Valuation Sensitivity
Base NOI
Base cap rate
Cap-rate step
NOI step
One-variable, value by cap rate (NOI fixed at $1,650,000)
| Cap Rate | Indicated Value | Change vs. Base |
|---|---|---|
| 5.00% | $33,000,000 | +10.0% |
| 5.25% | $31,428,571 | +4.8% |
| 5.50% (base) | $30,000,000 | Base |
| 5.75% | $28,695,652 | -4.3% |
| 6.00% | $27,500,000 | -8.3% |
| 6.25% | $26,400,000 | -12.0% |
| 6.50% | $25,384,615 | -15.4% |
Two-variable, value by NOI × cap rate
| Cap ＼ NOI | $1.6M | $1.6M | $1.6M | $1.7M | $1.8M |
|---|---|---|---|---|---|
| 5.25% | $29.5M | $30.5M | $31.4M | $32.4M | $33.3M |
| 5.50% | $28.2M | $29.1M | $30.0M | $30.9M | $31.8M |
| 5.75% | $27.0M | $27.8M | $28.7M | $29.6M | $30.4M |
| 6.00% | $25.8M | $26.7M | $27.5M | $28.3M | $29.2M |
| 6.25% | $24.8M | $25.6M | $26.4M | $27.2M | $28.0M |
Base case
$30,000,000
5.50% · $1,650,000
Low corner
$24.8M
high cap, low NOI
High corner
$33.3M
low cap, high NOI
The full grid spans $24.8M to $33.3M, a $8.5M range. That is not a model error; it is an honest picture of how two uncertain inputs drive value.
Learn the concept
This calculator comes from the free Real Estate Finance course, where the concept is taught with readings, worked examples, and practice questions.
Built by Devon Coombs, CPA, MBA, Teaching Professor of Finance at Santa Clara University.