Valuation Sensitivity Grid
How sensitive is value to the cap rate?
Small changes in cap rate and NOI move value more than most owners expect. This grid shows the range at 75 basis points either way.
Inputs
Rows show NOI at two steps below and above your input.
Results
Indicated value at your inputs
$19,230,769
| NOI \ Cap | 5.75% | 6.00% | 6.25% | 6.50% | 6.75% | 7.00% | 7.25% |
|---|---|---|---|---|---|---|---|
| $1.13M | $19.57M | $18.75M | $18.00M | $17.31M | $16.67M | $16.07M | $15.52M |
| $1.19M | $20.65M | $19.79M | $19.00M | $18.27M | $17.59M | $16.96M | $16.38M |
| $1.25M | $21.74M | $20.83M | $20.00M | $19.23M | $18.52M | $17.86M | $17.24M |
| $1.31M | $22.83M | $21.88M | $21.00M | $20.19M | $19.44M | $18.75M | $18.10M |
| $1.38M | $23.91M | $22.92M | $22.00M | $21.15M | $20.37M | $19.64M | $18.97M |
A 75 basis point move in cap rate at your NOI changes value by $1,989,390 on the way up and $2,508,361 on the way down.
Assumptions
- Value equals NOI divided by cap rate. This is a direct capitalization estimate, not an appraisal.
- The cap rate is your input. Support it with recent comparable sales for the same asset type, class, and market.
- Use NOI a buyer or lender would underwrite, including a market management fee, reserves, and taxes reassessed at the sale price.
Results are educational estimates based on the inputs and assumptions shown. They are not a commitment to lend, an offer of financing, or an offer to sell or a solicitation of an offer to buy any security. Actual terms depend on lender underwriting and approval.