Multi-Family & Commercial Cash Flow Calculator
Build a dynamic unit mix, calculate NOI, cap rate, DSCR, and cash-on-cash return for multi-family and commercial investment properties.
Property & Financing
Operating Expenses
Monthly Cash Flow
$11,080
Cash-on-Cash Return
26.59%
Net Operating Income
$252,712
Annual
Cap Rate
12.64%
NOI ÷ Price
DSCR
2.11
NOI ÷ Debt Service
Annual Debt Service
$119,754
Principal & Interest
Annual Cash Flow Breakdown
How the Commercial Cash Flow Calculator Works
This calculator lets you build a dynamic unit mix for multi-family and commercial investment properties — enter the number of units, unit type, and monthly rent for each row, then add other revenue, vacancy, management, taxes, insurance, and reserves. The tool instantly computes Net Operating Income (NOI), cap rate, Debt Service Coverage Ratio (DSCR), and cash-on-cash return so you can evaluate whether a deal cash flows before you buy.
Key Commercial Real Estate Formulas
NOI = Gross Revenue − Vacancy Loss − Operating Expenses
Cap Rate = NOI ÷ Purchase Price × 100
DSCR = NOI ÷ Annual Debt Service
Cash-on-Cash Return = Annual Cash Flow ÷ Cash Invested × 100
How to Improve Your Cash Flow
Increase Revenue
Raise rents to market rates, add ancillary income streams (laundry, parking, storage, late fees), or reposition units to higher-paying tenants. Even a $50/month increase per unit on a 10-unit property adds $6,000/year to NOI.
Reduce Operating Expenses
Self-manage to save the management fee, contest property tax assessments, shop insurance annually, and benchmark utility costs. Every $1,000 in annual expense reduction increases NOI by $1,000 and boosts property value at the cap rate.
Optimize Financing
Negotiate a lower interest rate, extend the amortization term, or increase the down payment to reduce debt service. A 0.5% rate reduction on a $1.5M loan saves roughly $5,400/year in debt service, directly improving DSCR and cash flow.
Frequently Asked Questions
What is a good DSCR for a commercial property?
Most commercial lenders require a minimum DSCR of 1.25, meaning the property generates 25% more net operating income than the debt service. A DSCR below 1.0 means the property does not generate enough income to cover its debt payments — a red flag for lenders and investors.
What cap rate should I target?
Cap rates vary by market, asset class, and risk. Class A multi-family in major metros may trade at 4-5% cap rates, while Class C properties in secondary markets may offer 7-9%. Higher cap rates mean more income relative to price but often carry more risk. Always compare cap rates to similar properties in the same market.
What is cash-on-cash return and how is it different from cap rate?
Cap rate measures the unleveraged return based on the full purchase price. Cash-on-cash return measures the return on your actual cash invested (the down payment). With leverage, cash-on-cash return can be higher than the cap rate if the loan rate is below the cap rate, amplifying returns — but leverage also amplifies losses if the property underperforms.
What vacancy rate should I use?
A 5% vacancy rate is a common default for stabilized multi-family. Use 7-10% for properties with higher turnover or in softer markets. For commercial single-tenant properties, vacancy risk is concentrated — if the tenant leaves, vacancy jumps to 100% until re-leased, so use a higher rate.
What operating expenses should I include?
Include property taxes, insurance, property management fees, repairs and maintenance reserves, utilities paid by the owner, landscaping, snow removal, and any other recurring costs. Do not include the mortgage payment — that is captured separately as debt service in the DSCR and cash flow calculations.