Commercial Real Estate Pro Forma Calculator
Calculate commercial real estate pro forma with a professional-grade tool that estimates NOI, cap rate, and investment performance metrics.
Commercial Pro Forma Inputs
Provide your assumptions for property value, operating income, and operating expenses.
*All inputs are required and must be zero or greater.
How to Use This Calculator
Enter the property value alongside the expected annual operating income and expenses. Tap Calculate to refresh the results; the tool mirrors the pro forma framework used by commercial investors.
Data Source and Methodology
Calculations follow standard commercial real estate pro forma practices. We subtract operating expenses from operating income to produce NOI, then divide NOI by the property value to compute the capitalization rate.
Results assume stable cash flows and do not reflect financing, depreciation, or tax impacts. Treat numbers as estimates and consult a professional for definitive underwriting.
Glossary of Variables
- Property Value: Total market value of the commercial asset.
- Operating Income: Gross income generated by the property before expenses.
- Operating Expenses: Costs required to operate and maintain the asset.
- Net Operating Income (NOI): Operating income minus operating expenses.
- Cap Rate: NOI divided by property value, expressed as a percentage.
Frequently Asked Questions (FAQ)
What is a pro forma?
A pro forma is a financial projection that estimates future income, expenses, and return metrics for a commercial property.
Why is the cap rate important?
Cap rate helps investors compare the expected return across properties without considering financing.