Real estate pro forma calculator
Free real estate pro forma calculator: model NOI, cash flow, IRR, and equity multiple from income, expenses, debt, and exit cap — for CRE investors.
Capital Structure
Down payment + closing costs + upfront capex
Annual principal + interest payments
Income & Expenses
Effective gross income (gross rents minus vacancy)
Taxes, insurance, management, maintenance, reserves (not debt service)
Used to compute terminal value (final NOI / exit cap)
IRR
10.36%
Equity Multiple
1.59x
Terminal Value
$2,130,880
Net Sale Proceeds
$657,383
| Year | NOI | Cash Flow |
|---|---|---|
| Year 1 | $120,000 | $18,000 |
| Year 2 | $124,400 | $22,400 |
| Year 3 | $128,948 | $26,948 |
| Year 4 | $133,649 | $31,649 |
| Year 5 | $138,507 | $36,507 |
Auto-fill from a pasted rent roll
Paste your rent roll below and click "Auto-fill" to extract income and expense estimates. The AI fills what it can — every extracted value is labelled "AI-extracted — verify before use". The manual inputs above work fully without this step.
AI-extracted values are estimates only. Always verify against your actual rent roll and T12 operating statements.
Example result (default inputs — $2M acquisition, 5-year hold):
IRR
10.36%
Equity Multiple
1.59x
Terminal Value
$2,130,880
Net Sale Proceeds
$657,383
| Year | NOI | Cash Flow |
|---|---|---|
| Year 1 | $120,000 | $18,000 |
| Year 2 | $124,400 | $22,400 |
| Year 3 | $128,948 | $26,948 |
| Year 4 | $133,649 | $31,649 |
| Year 5 | $138,507 | $36,507 |
Example: $2M acquisition, $500K equity, 6.5% rate, 5-year hold, 3% income growth, 2% opex growth, 6.5% exit cap. Adjust inputs above to model your deal.
Where AI changes the answer
A real estate pro forma is only as good as the assumptions behind it. The numbers are arithmetic — NOI minus debt service, exit price divided by cap rate — but the judgment calls are where models live or die: which rent growth rate is realistic, what exit cap to assume, how much to reserve for deferred maintenance. This is where AI changes the outcome. **Where AI changes the pro forma:** **1. Auto-fill from a pasted rent roll (this calculator's first live AI feature).** Paste your actual rent roll — unit mix, in-place rents, lease expirations — into the AI assist box and click "Auto-fill from rent roll." The AI (Claude Haiku, accessed through the existing NextAutomation OpenRouter adapter) extracts year-1 effective gross income, unit count, and operating expense estimates from the raw text and pre-fills the inputs. This is decision-support, not underwriting advice: every AI-extracted value is prominently labelled "AI-extracted — verify before use." Review each value against your actual rent roll and T12 statements before committing to the model. The manual calculator works fully without the AI — the rent-roll assist is optional and never gates your result. **2. Stress-testing exit assumptions.** Exit cap rate is the single most dangerous assumption in a pro forma model. A 25bps move in the exit cap on a $200,000 NOI property changes the terminal value by roughly $770,000 — which can swing IRR by 100–300bps depending on leverage and hold period. AI can model dozens of exit scenarios in seconds and surface which inputs move the dial the most in your specific deal structure. Any market cap-rate range shown is an ESTIMATE: validate against recent comparable transaction cap rates for your asset class and submarket. **3. Operating expense reality-check.** Pro formas routinely understate expenses — missing management fees (typically 8–10% of collected rent, ESTIMATE), reserves for replacement ($150–$300/unit/year for multifamily, ESTIMATE), or insurance increases in high-cat markets. AI can flag when your operating expense ratio sits below 35% (a red flag on multifamily — it likely means expenses are understated) and surface the specific line items most commonly omitted on seller-provided pro formas. **4. Equity multiple vs. IRR.** IRR assumes all interim cash flows are reinvested at the IRR rate — which overstates the true annualized return when distributions are redeployed at lower rates. Equity multiple corrects for this: it is a simple ratio of total distributions to equity invested, with no reinvestment assumption. A 20% IRR over 3 years with a 1.35x equity multiple is structurally weaker than a 14% IRR over 7 years with a 2.0x equity multiple. This calculator shows both simultaneously so you can evaluate the tradeoff for your specific hold horizon and capital return targets. This calculator is decision-support for CRE investors building multi-year income projections. It does not substitute for a lender's underwriting, an MAI appraisal, or investment advisory services.
Questions real estate teams ask
What is a real estate pro forma and what does it include?
A real estate pro forma is a multi-year projection of a property's income, expenses, and cash flows under a set of assumptions — rent growth, expense growth, vacancy, debt service, and an exit. A complete pro forma includes: Effective Gross Income (scheduled rents minus vacancy and credit loss), Operating Expenses (taxes, insurance, management, maintenance, reserves), Net Operating Income (EGI minus OpEx), Cash Flow (NOI minus debt service), and deal-level return metrics — IRR and equity multiple — that incorporate the purchase price, equity invested, hold period, and exit value. The exit value (terminal value) is typically derived by applying an exit cap rate to the final year's NOI.
How is NOI different from cash flow in a pro forma?
NOI (Net Operating Income) = Effective Gross Income − Operating Expenses. It is an unlevered metric — it ignores financing entirely. Cash Flow = NOI − Annual Debt Service. Cash flow is the levered return — what is actually left after paying the lender each year. A property with $120,000 NOI and $96,000 in annual debt service produces $24,000 in annual cash flow. Cap rate is computed from NOI (unlevered yield); cash-on-cash and IRR are computed from cash flow (levered returns). The distinction matters because leverage amplifies both gains and losses.
What is IRR and how does it differ from equity multiple?
IRR (Internal Rate of Return) is the annualized rate that makes the net present value of all equity cash flows — including your initial investment outflow and all future distributions plus the sale proceeds — equal to zero. It is time-weighted: a higher IRR for a shorter hold can produce fewer total dollars than a lower IRR over a longer hold. Equity multiple is the total money-on-money return in nominal dollars: total positive distributions divided by equity invested. A 1.70x equity multiple means you received $1.70 for every $1.00 invested. Use both: IRR for comparing the annualized efficiency of capital deployment; equity multiple for the absolute dollars generated. A 20% IRR over 2 years with a 1.35x equity multiple is weaker in absolute dollars than a 14% IRR over 7 years with a 2.0x equity multiple.
How does the AI rent-roll auto-fill work, and how reliable is it?
When you paste your rent roll into the AI assist box and click 'Auto-fill from rent roll,' the calculator sends the raw text to Claude Haiku (via NextAutomation's existing OpenRouter adapter) with a structured prompt asking it to extract year-1 effective gross income, unit count, and operating expense estimates. The AI returns structured JSON, which the calculator uses to pre-fill your model inputs. Every AI-extracted value is prominently labelled 'AI-extracted — verify before use.' The reliability depends on the quality and format of the rent roll you paste: well-structured rent rolls (unit number, type, rent, lease dates) extract cleanly; handwritten or heavily formatted PDFs may produce incomplete extractions. Always verify AI-extracted values against your actual rent roll and T12 operating statements before committing to a model. The manual calculator works fully without the AI — the assist is optional and never gates your result.
What exit cap rate should I use in a pro forma?
Exit cap rate is the most sensitive assumption in a pro forma model — a 25bps move in your assumed exit cap on a property with $200,000 NOI changes the terminal value by roughly $770,000, which can swing IRR by 100–300bps depending on leverage and hold period (ESTIMATE — actual sensitivity depends on your deal structure). As a starting point, model your exit cap 25–50bps wider than the going-in cap rate to reflect the aging of the asset and potential market softening over your hold period. Stabilized multifamily in secondary markets commonly exited in the 5.5–7.0% range in recent years (ESTIMATE — rates move with the interest rate cycle, asset class, and market conditions). Always validate against current comparable transaction cap rates for your specific asset class, vintage, and submarket before pricing a deal. This calculator is decision-support; exit cap rate inputs are not market quotes.
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