100% Gross Potential Income ¹$
Less Vacancy and Uncollectables ²$ 7.5% 10% 12.5% 15% 20%
Effective Gross Income$

 

Less Expenses ³
Taxes$
Insurance$
Utilities$
Janitorial $
Management ⁴$
Trash$
Maintenance & Repairs$
Administrative$
Miscellaneous$
Total Operating Expenses$ % of TOI

 

Net Operating Income$
Less
Total Sq Ft  Sq.Ft.
Capital Reserves ⁵ per unit$ .15 .175 .20 .25
Tenant Improvement Reserves ⁶$ .60 .70 .80 .90 1.00
Leasing Commission Reserves ⁷$ .40 .50 .60 .70 .80  
Total Below Line Expense$
Cash Flow Available to Service Debt$

 

 

Calculator

Interest Rate   %
Repayment Schedule (years)   years
Debt Service Coverage ⁸   1.2 1.25 1.3 1.35 1.4
Loan Amount$

Notes:
1. Sum of all actual income assuming 100% occupancy.
2. Input actual vacancy and uncollectables. If input is less than 5% of Gross Potential Income, model will automatically defaut to greater number.
3. Input actual expenses with necessary adjustments for Taxes and Insurance. Use Miscellaneous as a catch all.
4. Input actual management expenses. If input is less than 5% of Effective Potential Income, model will automatically defaut to greater number.
5. Use greater of $.15/sq. ft. or actual.
6. Use greater of $.60/sq. ft. or actual.
7. Use greater of $.40/sq. ft. or actual.
8. Defaults to 1.2 times.