Multifamily (5+ Unit) Calculator

How to use this calculator

Enter the purchase price, number of units, and average rent, then vacancy and other income. Set your operating expense ratio and loan terms. The calculator builds the operating statement, computes NOI, cap rate, DSCR, and cash-on-cash, and shows the value across a range of cap rates.

What the metrics mean

• Effective gross income (EGI) — gross potential rent minus vacancy plus other income.
• Net operating income (NOI) — EGI minus operating expenses, before debt service.
• Cap rate — NOI divided by price — the basis for commercial value.
• DSCR — NOI divided by annual debt service; lenders want roughly 1.20+.
• Price per unit — purchase price divided by the number of units, for quick comparison.

Frequently asked questions

How do you underwrite a multifamily property?

Start with gross potential rent (units × rent), subtract vacancy and add other income for effective gross income, then subtract operating expenses to get NOI. NOI drives cap rate, value, and your loan size.

Why are 5+ units valued differently?

Properties of five units or more are commercial. They’re financed and valued on their income (NOI ÷ cap rate), not on comparable home sales, so improving NOI directly raises value.

What is a good DSCR for multifamily?

Commercial lenders typically require a debt-service coverage ratio of 1.20–1.25 or higher. The calculator shows DSCR so you can see whether the income comfortably covers the debt.

What expense ratio should I use?

Operating expenses commonly run 40–50% of effective gross income for stabilized apartments, depending on age, who pays utilities, and management. Verify with the seller’s actuals (a T-12).

Scaling into apartments? dre1mery.com underwrites multifamily deals from the rent roll and ranks them against your buy box automatically.