Real Estate Capitalization Rate (CAP Rate) Calculator for Excel, Free Download — with Sensitivity Matrix


How to Use This CAP Rate Calculator: Play the Video ↓ 

 

CAP Rate Calculator with Sensitivity Matrix Excel Template

Download here the ultimate CAP RATE CALCULATOR with sensitivity matrix, part of 35+ simple templates for real estate agents — Excel and Google Sheets. FREE!


Cap rate (or Capitalization rate) is the rate at which you discount future income to determine its present value. In practice, the cap rate is a widely used ratio in commercial real estate analysis to express the relationship between a property’s value and its net operating income (NOI) for the current or coming year. To make it easy to quickly calculate the cap rate, download this simple workbook for Excel, Google Sheets, and LibreOffice Calc.

The numbers inserted in the spreadsheet are theoretical examples and are provided only to show how to enter data. They should not be used as a guide for what numbers to include in your own calculations.

Some basic instructions for doing the analysis are included below, but you may double-check calculations and you may consult your team (accountant, tax advisor, property manager, legal rep, etc.) before using the file, which is intended for informational and educational purposes only.

How to Use this Spreadsheet

Sensitivity analysis in Excel lets us examine the uncertainty in the output of the model with the changes in the input variables. In real estate, a sensitivity analysis includes several factors that might impact the property’s returns and measures how a change in each factor would influence profits.

Since real estate factors like the selling price are beyond the investor’s control, such an analysis is particularly useful in allowing realtors to figure out the worst/best case scenario. For example, a sensitivity analysis will help you answer questions like: ‘If I want to buy the property for not more than $X, what would the corresponding cap rate and NOI be?’

Running a sensitivity analysis can be quite complicated, which is why you’ll do one through Excel.

Sensitivity Analysis in Excel using Tipsographic file is very straightforward. By and large, here’s the workflow:

  1. Decide what result do you want to discover from this analysis, cap rate, property value, or NOI.
  2. Choose variable #1: What variable would you like to test out?
  3. Choose variable #2: Choose the second variable.
  4. Open the spreadsheet; in the calculator in the upper part, enter any two variables by editing the cells with the light yellow background. The output, or result of the two variables will populate automatically the tables in the second half.

Free, easy!

Download

Download CAP Rate Calculator with Sensitivity Matrix for Excel

CAP Rate Calculator: Next Steps


Here are a few  links you may want to check out to learn more about cap rate:

LICENCE AGREEMENT:  Private Use (not for distribution or resale).

commercial real estate investment analysis spreadsheet, commercial real estate software, cap table calculator, real estate agent expenses spreadsheet, real estate business expense spreadsheet, real estate investment portfolio template, commercial real estate investing, real estate investment analysis spreadsheet, free excel investment portfolio spreadsheet, real estate investment analysis, top free crm for small business, free crm services, best crm for marketing agency, simple crm free, free online crm tools, best crm for real estate investors, free crm packages, best crm for mortgage brokers, simple free crm software, top producer crm free trial, best crm for small business, property management crm software, free crm download, best crm with social media integration, online crm software, free crm with email integration, best crm systems, crm for small business, software crm, lead management software, best free crm for small business, real estate excel template free.