Master Commercial Real Estate Analysis
This interactive guide simplifies the three most vital metrics in commercial real estate: Net Operating Income (NOI), Cap Rate, and Cash on Cash Return. Use the calculators and visualizations below to understand how properties perform and how to make smarter investment decisions.
Net Operating Income (NOI)
NOI is the foundation of property analysis, representing its profitability from core operations before accounting for debt or taxes. It provides a pure, unlevered view of a property's financial health, answering the question: "How much profit does the asset itself generate?"
NOI Calculator
Net Operating Income
$50,800
Income vs. Expenses
This chart visualizes how your gross income is offset by operating expenses to yield the NOI. Adjust the calculator inputs to see how changes in revenue or costs impact profitability.
Valuation Seesaw
This seesaw illustrates the inverse relationship between Cap Rate and Property Value. For a fixed NOI, a higher property value results in a lower Cap Rate, and vice-versa. Modify the inputs to see it in action.
Capitalization Rate (Cap Rate)
The Cap Rate translates a property's NOI into a measure of market value and return, assuming a cash purchase. It's a key metric for comparing the relative risk and value of similar properties, answering: "What is the property's unlevered rate of return at its current market price?"
Cap Rate Calculator
Capitalization Rate
14.11%
Cash on Cash (CoC) Return
Cash on Cash Return is a powerful, levered metric that measures the return on your actual cash invested. By including debt service, it provides a personalized view of your investment's performance, answering the crucial question: "How hard is my own money working for me?"
CoC Return Calculator
Annual Before-Tax Cash Flow
$60,000
Cash on Cash Return
27.27%
Return on Your Equity
This chart shows your Cash on Cash Return as a percentage of your total invested equity. This metric is highly sensitive to financing; use the calculator to see how different loan terms or a larger down payment would impact your personal returns.
A Holistic Investment View
These metrics are powerful alone, but truly insightful when used together. They form an analytical cascade, moving from the property's intrinsic performance (NOI) to its market valuation (Cap Rate) and finally to your personalized, levered return (CoC). Use the simulator below to see how they all connect.
Full Scenario Simulator
Property Inputs
Financing Inputs
Key Metric Results
NOI:
$75,000
Cap Rate:
7.50%
Cash Invested:
$250,000
Cash Flow:
$17,737
Cash on Cash Return
7.10%