Commercial Property ROI Calculator
ANA›Life Services Authority›National Calculator Authority›Commercial Property ROI Calculator
.calc-container { max-width: 640px; margin: 2rem 0; padding: 1.5rem; background: #fff; border: 1px solid #ddd; border-radius: 8px; box-shadow: 0 1px 3px rgba(0,0,0,0.06); font-family: system-ui, -apple-system, sans-serif; } .calc-container h3 { font-family: Georgia, serif; font-size: 1.15rem; color: #1a1a1a; margin-bottom: 1rem; padding-bottom: 0.5rem; border-bottom: 2px solid var(--ac, #3d5a80); } .calc-row { display: flex; align-items: center; gap: 0.75rem; margin-bottom: 0.75rem; flex-wrap: wrap; } .calc-row label { min-width: 160px; font-size: 0.9rem; color: #333; font-weight: 500; } .calc-row input[type="number"], .calc-row select { flex: 1; min-width: 120px; max-width: 200px; padding: 0.5rem 0.6rem; border: 1px solid #ccc; border-radius: 4px; font-size: 0.9rem; font-family: system-ui, sans-serif; color: #1a1a1a; background: #fafaf8; } .calc-row input:focus, .calc-row select:focus { outline: none; border-color: var(--ac, #3d5a80); box-shadow: 0 0 0 2px rgba(26,74,138,0.12); } .calc-row .unit { font-size: 0.82rem; color: #888; min-width: 30px; } .calc-btn { display: inline-block; margin-top: 0.5rem; padding: 0.55rem 1.5rem; background: var(--ac, #3d5a80); color: #fff; border: none; border-radius: 4px; font-size: 0.9rem; font-weight: 600; cursor: pointer; font-family: system-ui, sans-serif; } .calc-btn:hover { opacity: 0.9; } .calc-result { margin-top: 1.25rem; padding: 1rem 1.25rem; background: #f0f6fc; border-left: 3px solid var(--ac, #3d5a80); border-radius: 0 6px 6px 0; display: none; } .calc-result.visible { display: block; } .calc-result-label { font-size: 0.78rem; text-transform: uppercase; letter-spacing: 0.06em; color: #666; margin-bottom: 0.25rem; } .calc-result-value { font-size: 1.6rem; font-weight: 700; color: var(--ac, #3d5a80); } .calc-result-detail { font-size: 0.85rem; color: #555; margin-top: 0.5rem; line-height: 1.5; } .calc-note { margin-top: 1rem; font-size: 0.8rem; color: #888; font-style: italic; } .calc-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 0.75rem; margin-top: 0.75rem; } .calc-grid-item { padding: 0.6rem 0.8rem; background: #f8f9fa; border-radius: 4px; border: 1px solid #eee; } .calc-grid-item .label { font-size: 0.75rem; color: #888; text-transform: uppercase; letter-spacing: 0.04em; } .calc-grid-item .value { font-size: 1.1rem; font-weight: 600; color: #1a1a1a; } @media (max-width: 720px) { .calc-row { flex-direction: column; align-items: flex-start; gap: 0.3rem; } .calc-row label { min-width: auto; } .calc-row input[type="number"], .calc-row select { max-width: 100%; width: 100%; } .calc-grid { grid-template-columns: 1fr; } } .calc-chart { margin: 1rem 0; text-align: center; } .calc-chart svg { max-width: 100%; height: auto; } .calc-chart-legend { display: flex; flex-wrap: wrap; justify-content: center; gap: 0.6rem 1.2rem; margin-top: 0.6rem; font-size: 0.8rem; color: #555; } .calc-chart-legend span { display: inline-flex; align-items: center; gap: 0.3rem; } .calc-chart-legend i { display: inline-block; width: 10px; height: 10px; border-radius: 2px; font-style: normal; } .calc-related { max-width: 640px; margin: 2rem 0 1rem; padding: 1.25rem 1.5rem; background: #f8f9fa; border: 1px solid #e8e8e8; border-radius: 8px; } .calc-related h3 { font-family: Georgia, serif; font-size: 1rem; color: #1a1a1a; margin: 0 0 0.75rem; padding-bottom: 0.4rem; border-bottom: 2px solid var(--ac, #3d5a80); } .calc-related-list { list-style: none; padding: 0; margin: 0 0 0.75rem; display: grid; grid-template-columns: 1fr 1fr; gap: 0.4rem 1.5rem; } .calc-related-list li a { font-size: 0.88rem; color: var(--ac, #3d5a80); text-decoration: none; } .calc-related-list li a:hover { text-decoration: underline; } .calc-browse-all { margin: 0.5rem 0 0; font-size: 0.9rem; font-weight: 600; } .calc-browse-all a { color: var(--ac, #3d5a80); text-decoration: none; } .calc-browse-all a:hover { text-decoration: underline; } @media (max-width: 720px) { .calc-related-list { grid-template-columns: 1fr; } }
Commercial Property ROI Calculator
Evaluate the profitability of a commercial real estate investment by calculating Net Operating Income (NOI), Cap Rate, Cash-on-Cash Return, and Equity Multiple over your holding period.
### Purchase & Financing
Purchase Price ($)
Down Payment (%)
Annual Loan Interest Rate (%)
Loan Term (years)
Closing Costs ($)
Initial CapEx / Renovation ($)
### Annual Income
Gross Annual Rental Income ($)
Vacancy & Credit Loss Rate (%)
Other Annual Income ($)
### Annual Operating Expenses
Property Taxes ($)
Insurance ($)
Property Management Fee (% of EGI)
Maintenance & Repairs ($)
Utilities ($)
Other Operating Expenses ($)
### Growth & Exit Assumptions
Annual Income Growth Rate (%)
Annual Expense Growth Rate (%)
Holding Period (years)
Exit Cap Rate (%)
Selling Costs (% of Sale Price)
Calculate ROI
### Results
function comCalc() { const err = document.getElementById('com_error'); const res = document.getElementById('com_result'); err.style.display = 'none'; res.style.display = 'none';
// --- Parse Inputs --- const purchasePrice = parseFloat(document.getElementById('com_purchase_price').value); const downPct = parseFloat(document.getElementById('com_down_payment_pct').value); const loanRate = parseFloat(document.getElementById('com_loan_rate').value); const loanTerm = parseFloat(document.getElementById('com_loan_term').value); const closingCosts = parseFloat(document.getElementById('com_closing_costs').value) || 0; const capex = parseFloat(document.getElementById('com_capex').value) || 0; const grossRent = parseFloat(document.getElementById('com_gross_rent').value); const vacancyPct = parseFloat(document.getElementById('com_vacancy_rate').value) || 0; const otherIncome = parseFloat(document.getElementById('com_other_income').value) || 0; const propertyTax = parseFloat(document.getElementById('com_property_tax').value) || 0; const insurance = parseFloat(document.getElementById('com_insurance').value) || 0; const mgmtPct = parseFloat(document.getElementById('com_management_fee_pct').value) || 0; const maintenance = parseFloat(document.getElementById('com_maintenance').value) || 0; const utilities = parseFloat(document.getElementById('com_utilities').value) || 0; const otherExpenses = parseFloat(document.getElementById('com_other_expenses').value) || 0; const incomeGrowthPct = parseFloat(document.getElementById('com_income_growth').value) || 0; const expenseGrowthPct = parseFloat(document.getElementById('com_expense_growth').value) || 0; const holdingPeriod = parseFloat(document.getElementById('com_holding_period').value); const exitCapRatePct = parseFloat(document.getElementById('com_exit_cap_rate').value); const sellingCostsPct = parseFloat(document.getElementById('com_selling_costs_pct').value) || 0;
// --- Validation --- const errors = []; if (isNaN(purchasePrice) || purchasePrice 0."); if (isNaN(downPct) || downPct 100) errors.push("Down Payment must be 0–100%."); if (isNaN(loanRate) || loanRate 0%."); if (errors.length > 0) { err.innerHTML = errors.join(''); err.style.display = 'block'; return; }
// --- Core Calculations ---
// Financing const downPayment = purchasePrice * (downPct / 100); const loanAmount = purchasePrice - downPayment; const totalEquityIn = downPayment + closingCosts + capex; // Total cash invested
// Monthly mortgage payment (standard amortization) // M = P * [r(1+r)^n] / [(1+r)^n - 1] const monthlyRate = loanRate / 100 / 12; const numPayments = loanTerm * 12; let annualDebtService = 0; let monthlyPayment = 0; if (loanAmount > 0 && loanRate > 0) { monthlyPayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numPayments)) / (Math.pow(1 + monthlyRate, numPayments) - 1); annualDebtService = monthlyPayment * 12; } else if (loanAmount > 0 && loanRate === 0) { monthlyPayment = loanAmount / numPayments; annualDebtService = monthlyPayment * 12; }
// Year-1 Income & Expenses const vacancyLoss = grossRent * (vacancyPct / 100); const egi = grossRent - vacancyLoss + otherIncome; // Effective Gross Income const mgmtFee = egi * (mgmtPct / 100); const totalOpEx = propertyTax + insurance + mgmtFee + maintenance + utilities + otherExpenses; const noi = egi - totalOpEx; // Net Operating Income const cashFlowY1 = noi - annualDebtService; // Before-tax Cash Flow
// Key Ratios (Year 1) const capRate = (noi / purchasePrice) * 100; // Cap Rate const cashOnCash = totalEquityIn > 0 ? (cashFlowY1 / totalEquityIn) * 100 : 0; // CoC Return const dscr = annualDebtService > 0 ? noi / annualDebtService : Infinity; // DSCR const grm = grossRent > 0 ? purchasePrice / grossRent : 0; // GRM
// Multi-year projection & loan payoff const incomeGrowth = incomeGrowthPct / 100; const expenseGrowth = expenseGrowthPct / 100;
let totalCashFlow = 0; let loanBalance = loanAmount; let yearlyRows = '';
for (let y = 1; y 0 && monthlyPayment > 0) { let bal = loanBalance; for (let m = 0; m ${y} $${fmt(yNOI)} $${fmt(yCashFlow)} $${fmt(loanBalance)} `; }
// Exit / Sale // Final year NOI for exit valuation const finalGF = Math.pow(1 + incomeGrowth, holdingPeriod); const finalEF = Math.pow(1 + expenseGrowth, holdingPeriod); const finalGrossRent = grossRent * finalGF; const finalVacancy = finalGrossRent * (vacancyPct / 100); const finalEGI = finalGrossRent - finalVacancy + otherIncome * finalGF; const finalMgmt = finalEGI * (mgmtPct / 100); const finalOpEx = (propertyTax + insurance + maintenance + utilities + otherExpenses) * finalEF + finalMgmt; const finalNOI = finalEGI - finalOpEx;
// Sale Price = Final NOI / Exit Cap Rate const exitCapRate = exitCapRatePct / 100; const salePrice = finalNOI / exitCapRate; const sellingCosts = salePrice * (sellingCostsPct / 100); const netSaleProceeds = salePrice - sellingCosts - loanBalance;
// Total Profit & Returns const totalProfit = totalCashFlow + netSaleProceeds; const equityMultiple = totalEquityIn > 0 ? (totalProfit + totalEquityIn) / totalEquityIn : 0;
// IRR via Newton-Raphson (cash flows: -totalEquityIn at t=0, then annual cash flows, + net sale at end) // Build cash flow array const cfArray = [-totalEquityIn]; for (let y = 1; y
Year 1 Snapshot
Effective Gross Income (EGI)$${fmt(egi)} Total Operating Expenses$${fmt(totalOpEx)} Net Operating Income (NOI)$${fmt(noi)} Annual Debt Service$${fmt(annualDebtService)} Before-Tax Cash Flow= 0 ? '#27ae60' : '#c0392b'};">$${fmt(cashFlowY1)} Cap Rate${capRate.toFixed(2)}% Cash-on-Cash Return${cashOnCash.toFixed(2)}% Debt Service Coverage Ratio (DSCR)${isFinite(dscr) ? dscr.toFixed(2) : '∞'} Gross Rent Multiplier (GRM)${grm.toFixed(2)}x Total Cash Invested$${fmt(totalEquityIn)}
Exit & Total Returns (${holdingPeriod}-Year Hold)
Projected Sale Price$${fmt(salePrice)} Selling Costs$${fmt(sellingCosts)} Remaining Loan Balance$${fmt(loanBalance)} Net Sale Proceeds$${fmt(netSaleProceeds)} Total Cash Flow (${holdingPeriod} yrs)$${fmt(totalCashFlow)} Total Profit= 0 ? '#27ae60' : '#c0392b'};">$${fmt(totalProfit)} Equity Multiple (EM)${equityMultiple.toFixed(2)}x IRR (Levered)${irrDisplay}
#### Year-by-Year Projection
Year NOI Cash Flow Loan Balance
${yearlyRows}
`;
document.getElementById('com_output').innerHTML = output; res.style.display = 'block'; }
function fmt(n) { if (!isFinite(n)) return '0'; return Math.round(n).toLocaleString('en-US'); }
// IRR via Newton-Raphson iteration function calcIRR(cashFlows, guess = 0.1, maxIter = 1000, tol = 1e-7) { let rate = guess; for (let i = 0; i
#### Formulas Used
Effective Gross Income (EGI): EGI = Gross Rent × (1 − Vacancy Rate) + Other Income
Net Operating Income (NOI): NOI = EGI − Total Operating Expenses
Cap Rate: Cap Rate = NOI / Purchase Price × 100
Monthly Mortgage Payment: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1] where P = loan amount, r = monthly rate, n = total monthly payments
Before-Tax Cash Flow: Cash Flow = NOI − Annual Debt Service
Cash-on-Cash Return: CoC = Annual Cash Flow / Total Cash Invested × 100
Debt Service Coverage Ratio (DSCR): DSCR = NOI / Annual Debt Service
Gross Rent Multiplier (GRM): GRM = Purchase Price / Gross Annual Rent
Projected Sale Price (Exit): Sale Price = Final Year NOI / Exit Cap Rate
Equity Multiple (EM): EM = (Total Cash Flow + Net Sale Proceeds + Equity Invested) / Equity Invested
IRR: Solved via Newton-Raphson on the levered cash flow series: [−Equity In, CF₁, CF₂, …, CFₙ + Net Sale Proceeds]
#### Assumptions & References
- All calculations are before income tax; depreciation, capital gains tax, and 1031 exchanges are not modeled.
- Mortgage uses standard fixed-rate fully amortizing schedule (no interest-only or balloon).
- Exit sale price is determined by dividing the final holding-year NOI by the exit cap rate (direct capitalization method).
More Calculators
- Audit Fee Estimator
- Subnet Mask / CIDR Calculator
- Audit Sampling Size Calculator
- IP Address Class & Range Calculator
- Attic Air Sealing Heat Loss Calculator
- Attic Storage Load Capacity Calculator
- Appliance Energy Cost Calculator
- Appliance Repair vs. Replace Calculator
- Appliance Lifespan & Replacement Cost Calculator
- Auto Repair Cost Estimator
- Fuel Cost Calculator
Read Next
Study Time Planner Authority Network America › Life Services Authority › National Calculator Authority .calc-container { max-width: 640px;...