Free Multifamily Analysis Calculator

Analyze a multifamily property investment with per-unit income, operating expenses, debt service, and key return metrics.

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Annual Cash Flow

$14,882

Cap Rate7.85%
Cash-on-Cash Return7.4%
Debt Service Coverage Ratio1.31
Net Operating Income$62,784
Price Per Unit$100,000
Operating Expense Ratio43.3%

Annual Cash Flow vs Other Monthly Income (laundry, parking)

Multifamily Property Analysis

Multifamily investing requires evaluating income, expenses, and financing to determine whether a property meets your return requirements.

Income Analysis

  • Gross Potential Income: Total rent if 100% occupied + other income
  • Effective Gross Income: GPR minus vacancy and credit losses
  • Net Operating Income: EGI minus operating expenses
  • Key Metrics

  • Cap Rate: NOI / Purchase Price (measures property return)
  • Cash-on-Cash: Cash Flow / Cash Invested (measures investor return)
  • DSCR: NOI / Annual Debt Service (lenders want 1.25+)
  • Price Per Unit: Quick comparison metric for similar properties
  • Expense Guidelines

  • Operating expenses typically run 35-50% of EGI for multifamily
  • Include: management, maintenance, insurance, taxes, utilities, reserves
  • Exclude: debt service, depreciation, capital expenditures
  • Example Calculation

    8-unit building at $800,000, 25% down, 7% rate, 30yr. Average rent $1,200/unit, $400/mo other income, 8% vacancy, $48,000 annual expenses.

    1. 01Gross potential rent: 8 x $1,200 x 12 = $115,200
    2. 02Other income: $400 x 12 = $4,800
    3. 03GPI: $115,200 + $4,800 = $120,000
    4. 04Vacancy loss: $115,200 x 8% = $9,216
    5. 05EGI: $120,000 - $9,216 = $110,784
    6. 06NOI: $110,784 - $48,000 = $62,784
    7. 07Down payment: $800,000 x 25% = $200,000
    8. 08Loan: $600,000 at 7% for 30yr = $3,992.09/mo = $47,905/yr
    9. 09Cash flow: $62,784 - $47,905 = $14,879
    10. 10Cap rate: $62,784 / $800,000 = 7.85%
    11. 11Cash-on-cash: $14,879 / $200,000 = 7.4%
    12. 12DSCR: $62,784 / $47,905 = 1.31

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