Monthly CF
$0
Cash-on-Cash
0.0%
Cap Rate
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DSCR
0.00x
Multifamily Underwriting Calculator
Professional-grade deal analysis for 2-20 unit apartment buildings
Start with the location
Pick the market and we fill local property tax and insurance rates for you.
Used for 5-year projections. Adjust based on your market expectations.
Deal Analysis
Untitled Deal
Monthly Cash Flow
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Key Metrics
Quick Stats
For landlords
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How to calculate the value of a multifamily property
Small multifamily is valued on income, not on comparable house sales. The two methods every lender and appraiser will use:
Net operating income ÷ cap rate
Net operating income (NOI) is the rent roll minus vacancy and operating expenses (taxes, insurance, repairs, management, utilities you pay), before any loan payment. Divide it by the capitalization rate similar buildings sell at in the same submarket. Example: eight units at $1,400 a month is $134,400 of gross rent; after 5% vacancy and 40% expenses NOI is about $76,600; at a 6.5% cap rate the building is worth roughly $1.18 million. Each half-point of cap rate moves that value by about $85,000, which is why the cap rate you assume matters more than any other input.
Gross rent multiplier
Price ÷ annual gross rent. Useful for a first screen because it needs no expense data: if comparable buildings trade at 8× gross rent, the same $134,400 rent roll implies about $1.08 million. It ignores expenses, so a building with unusually high taxes or utilities will look cheaper than it is.
The calculator computes NOI from the rent roll and expenses you enter and shows the implied value at your cap rate, so you can see whether the asking price is supported by the income.
Multifamily mortgage and loan calculator
Financing depends on the unit count. Two-to-four-unit properties qualify for residential loans: 20% to 25% down as an investor, or 3.5% (FHA) to 5% (conventional) if you will live in one unit. Five or more units are commercial: typically 25% to 30% down, a 5- to 10-year fixed period with a 25- or 30-year amortization, and the loan sized to a minimum debt service coverage ratio (DSCR), usually 1.20 to 1.25, meaning NOI must cover the annual loan payment by that margin.
| Loan | Down payment | Loan amount | Monthly payment* |
|---|---|---|---|
| Owner-occupant FHA (2–4 units) | 3.5% ($35,000) | $965,000 | $6,420 |
| Owner-occupant conventional (2–4 units) | 5% ($50,000) | $950,000 | $6,320 |
| Investor residential (2–4 units) | 25% ($250,000) | $750,000 | $4,990 |
| Commercial / agency (5+ units) | 30% ($300,000) | $700,000 | $4,657 |
*On a $1,000,000 purchase, 30-year amortization, at 7% for illustration. Enter your own rate and terms in the calculator.
The calculator computes the payment, DSCR, and cash-on-cash return for whatever structure you enter, and flags when NOI will not support the loan at the lender’s coverage ratio.
How to underwrite a multifamily deal
- Verify the rent roll. Use actual leases and market rent for vacant units, not the seller’s pro forma.
- Rebuild expenses from scratch. Taxes at the post-sale assessment, real insurance quotes, 5% to 8% for management, and a repair reserve; small buildings run 35% to 50% of gross rent in expenses.
- Size the loan to DSCR, then check cash-on-cash return on the equity that structure requires.
- Stress the assumptions: 10% vacancy, a one-point rate rise at refinance, and a half-point cap rate expansion at exit.
For deals that mix apartments with ground-floor retail, see analyzing a mixed-use property; for owner-occupied 2-to-4 units, use the house hack calculator instead.
Frequently asked questions
How do you calculate the value of a multifamily property?
Divide net operating income by the market cap rate. A building with $96,000 of NOI in a market where similar buildings trade at a 6.5% cap rate is worth about $1,477,000 ($96,000 ÷ 0.065). The calculator computes NOI from your rent roll and expenses and shows the implied value at the cap rate you enter.
How much down payment does a multifamily loan require?
Investor loans on 2-to-4-unit properties typically require 20% to 25% down. Buildings with 5 or more units use commercial or agency financing, usually 25% to 30% down with the lender sizing the loan to a minimum debt service coverage ratio around 1.25. Owner-occupants can buy 2-to-4 units with 3.5% down (FHA) or 5% down (conventional).
Is the multifamily calculator free?
Yes. Your first analysis needs no account, and a free account includes 3 full analyses with every Pro feature. After that, Pro is $29 per month for unlimited underwriting and exports.
What does the calculator compute?
Net operating income, cap rate, DSCR, cash-on-cash return, IRR, and long-term projections, with support for value-add scenarios and partnership waterfall structures.
Can I enter units individually?
Yes. The rent roll supports unit-by-unit entry with different rents per unit, or bulk entry when units are similar.
What size buildings does it handle?
It is built for apartment buildings and uses commercial underwriting conventions: NOI, cap rate, and DSCR. For 1-4 unit residential deals, the Single Family Rental Calculator is purpose-built with residential loan types.