Multifamily Property Proforma Calculator

Input Value
Number of Units:
Average Rent Per Unit ($/mo):
Other Income ($/yr):
Vacancy Rate (%):
Property Taxes ($):
Insurance ($):
Maintenance ($):
Management Fee (% of EGI):
Other Expenses ($):
CapEx Reserves ($/unit/yr):
Purchase Price ($):
Loan Interest Rate (%):
Loan Amortization (years):
Loan-to-Value Ratio (LTV %):

Results

How to Use the Multifamily Property Proforma Calculator

Introduction to Multifamily Property Financial Analysis

Investing in multifamily properties can be one of the most lucrative real estate ventures—if you analyze the numbers correctly. Our Multifamily Property Proforma Calculator simplifies the financial evaluation process, helping you determine key metrics like Gross Potential Rent (GPR), Net Operating Income (NOI), and Cash Flow Before Tax. Whether you’re a seasoned investor or just starting, this tool equips you with the insights needed to make informed investment decisions.

Why Use This Multifamily Proforma Calculator?

  1. Accurate Analysis: Calculate essential metrics like NOI, Cap Rate, Debt Service, and Cash Flow Before Tax.

  2. User-Friendly: Intuitive design with easy-to-understand inputs and outputs.

  3. Detailed Results: See a breakdown of income, expenses, financing data, and overall performance metrics.

  4. Time-Saving: Quickly analyze any multifamily property in minutes.

How to Use the Calculator

1. Enter Building Data

Start by filling out the basic building data:

  • Number of Units: Total number of units in the property (e.g., 150).

  • Average Rent per Unit: Input the average monthly rent for each unit (e.g., $1,250).

  • Other Income: Include other annual income sources such as laundry, parking fees, or storage rentals (e.g., $90,000).

  • Vacancy Rate: Enter the expected vacancy percentage. A typical rate might be 5–10% for most markets.

2. Input Operating Expenses

Next, input your annual operating expenses:

  • Property Taxes: Enter the annual property tax amount (e.g., $250,000).

  • Insurance: Include the annual insurance premium for the property (e.g., $120,000).

  • Maintenance: Estimate the annual maintenance costs (e.g., $300,000).

  • Management Fee: Input the percentage of Effective Gross Income (EGI) allocated to property management (e.g., 7%).

  • Other Expenses: Add any additional annual expenses, such as legal fees or advertising (e.g., $225,000).

  • CapEx Reserves: Enter the annual capital expenditure reserves per unit (e.g., $250/unit/year).

3. Enter Financing Data

To evaluate your financing, provide the following:

  • Purchase Price: The total cost of acquiring the property (e.g., $18,000,000).

  • Loan Interest Rate: The annual interest rate for the loan (e.g., 5%).

  • Loan Term: The amortization period in years (e.g., 30 years).

  • Loan-to-Value Ratio (LTV): Enter the percentage of the property’s value being financed (e.g., 70%).

4. Click "Calculate"

Once all the inputs are filled, click the "Calculate" button. The calculator will instantly compute the following key metrics:

  • Gross Potential Rent (GPR): Total annual income if all units are rented.

  • Effective Gross Income (EGI): Adjusted income after accounting for vacancy and other income sources.

  • Total Operating Expenses: Sum of all annual property expenses.

  • Net Operating Income (NOI): Income after deducting operating expenses from EGI.

  • Cap Rate: NOI divided by the purchase price, expressed as a percentage.

  • Debt Service: Total annual loan payments.

  • Cash Flow Before Tax: The amount left after debt service payments.

5. Review the Results

The results will display in an easy-to-read format, with all metrics separated and highlighted. Key outputs like NOI, Cap Rate, and Cash Flow Before Tax allow you to quickly assess the property’s performance.

6. Print or Save the Results

  • Print Results: Click the "Print Results" button to open a printable version of the proforma, formatted for clarity.

  • Save as PDF: Click the "Save as PDF" button to download the results.

Examples of Use

1. Analyze a Potential Acquisition

You’re evaluating a 150-unit property with an average rent of $1,250/unit, a 7% management fee, and $250/unit/year in CapEx reserves. Input the property’s financial details into the calculator to determine whether it meets your investment goals.

2. Compare Financing Scenarios

Adjust the loan interest rate, term, or LTV to see how they impact your debt service and cash flow. This feature is invaluable for evaluating different financing options.

3. Forecast Property Performance

Use realistic vacancy and expense assumptions to create a proforma that accurately reflects the property’s expected performance over time.

FAQs

What is a Proforma in Real Estate?

A proforma is a financial projection that outlines the expected income, expenses, and returns for an investment property.

Can This Calculator Be Used for Any Property Type?

This calculator is specifically designed for multifamily properties but can be adapted for other income-producing properties by adjusting the inputs.

What is the Cap Rate?

The Capitalization Rate (Cap Rate) is the ratio of a property’s Net Operating Income (NOI) to its purchase price. It’s a key metric used to evaluate investment returns.

Start Analyzing Multifamily Properties Today

Don’t let complicated calculations slow you down. Use our Multifamily Property Proforma Calculator to evaluate potential investments, compare financing options, and project property performance—all in one convenient tool.