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.
By Devon Coombs, CPA, MBA · Teaching Professor of Finance, Santa Clara University · Reviewed August 2026
From the author: Devon Coombs, CPA, MBA teaches finance at Santa Clara University and works with corporate teams on practical AI.
AI training for finance teams · Consulting · The 10 Laws of Finance
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Valuation Sensitivity
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
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.
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Built by Devon Coombs, CPA, MBA, Teaching Professor of Finance at Santa Clara University.