Commercial real estate · Free calculator

Commercial Property ROI Calculator

Underwrite office, retail, industrial, or multifamily commercial real estate: NOI, cap rate, DSCR, cash-on-cash, and 5-year exit value.

Disclaimer: Educational estimate only — not investment, tax, or legal advice. Commercial deals turn on lease structure (NNN vs gross), tenant credit, capex reserves, and exit cap. Always confirm underwriting with a commercial broker, lender, and CPA before committing capital.

🇵🇦
Central America · USD

Commercial Property ROI CalculatorPanama

Model commercial real estate ROI in Panama: 2% transfer tax, 0.6% annual property tax, 10% CGT and ~6.5% commercial mortgage rate, with USD conversion.

Panama note: USD-denominated market. 0% property tax exemption on primary homes under $120K. Friendly Nations + retiree visas drive demand.

Scenarios
Common scenarios

Tap a persona to auto-load realistic numbers for that scenario, then tweak the sliders.

$2,200,000
30%
7.5%
25
$240,000
7%
38%

Taxes, insurance, mgmt, R&M, reserves. Lower for NNN leases.

7%
Formula used

Commercial NOI underwriting

Commercial value is driven entirely by NOI and the cap rate the next buyer applies. Cap-rate compression (or expansion) at exit can dwarf operating returns.

NOI = EGI − OpEx · Cap = NOI / Price · Exit Value = Year-5 NOI / Exit Cap
Lender DSCR
≥ 1.25
Equity multiple target
1.8–2.5x / 5yr
Killer
Exit cap drift
Backlink-friendly embed

Embed this calculator

Free to embed on any site. Inputs preserved, link back to RevenueLab. Each format trades polish for SEO juice.

<iframe src="https://revenuelab.fyi/embed/commercial-property-roi-calculator?price=2200000&down=30&rate=7.5&amort=25&gsi=240000&vacancy=7&opex=38&exitCap=7" width="100%" height="680" style="border:0;border-radius:12px;max-width:100%" loading="lazy" title="Commercial Property ROI Calculator"></iframe>
<p style="font:12px/1.4 system-ui;color:#666;margin:6px 0 0">Calculator by <a href="https://revenuelab.fyi/commercial-property-roi-calculator?price=2200000&down=30&rate=7.5&amort=25&gsi=240000&vacancy=7&opex=38&exitCap=7" target="_blank" rel="noopener">RevenueLab</a></p>

Easiest to install — passes referral traffic and a referring-domain signal.

Cite this calculator

Writing about this topic? Grab a citation — every link helps keep these tools free.

APA
RevenueLab. (2026). Commercial Property ROI Calculator. Retrieved from https://revenuelab.fyi/commercial-property-roi-calculator
HTML
<p>Source: <a href="https://revenuelab.fyi/commercial-property-roi-calculator" target="_blank" rel="noopener">Commercial Property ROI Calculator — RevenueLab</a> (2026).</p>
Markdown
Source: [Commercial Property ROI Calculator — RevenueLab](https://revenuelab.fyi/commercial-property-roi-calculator) (2026).

Lease structure changes everything

Gross leases (tenant pays rent, landlord pays taxes/insurance/maintenance) require ~35–45% opex assumptions. Absolute NNN leases (tenant pays all) can run 3–7% opex. The same building, same rent, has wildly different NOI depending on which lease type sits in place.

  • NNN: tenant pays taxes, insurance, CAM. Landlord opex is minimal.
  • Modified gross: landlord pays some operating costs, tenant reimburses excess.
  • Full-service gross: landlord pays everything. Common in older office.

Exit cap rate is the silent variable

A 50 bps cap-rate expansion on a stabilized commercial asset can erase 10–20% of value. Always stress-test exit cap +50 bps and +100 bps from your going-in assumption — if the deal only works at a compressed exit, it's a speculation, not an investment.

Tenant credit + WALT matter as much as cap rate

A 7% cap on a 10-year lease with an investment-grade tenant is a fundamentally different asset than a 7% cap on a month-to-month mom-and-pop. Weighted Average Lease Term (WALT), tenant credit, and lease renewal probability are baked into a real underwriting model — they don't show up in a back-of-envelope cap rate.

FAQ

What's a good cap rate for commercial property?

Class A urban industrial trades 5–6%, Class B multifamily 5.5–7%, suburban office 7–9%, single-tenant NNN retail 5.5–7% depending on tenant credit. Cap rates move with interest rates — what was a 'good' cap in 2021 is a different number in 2026.

What's the difference between cap rate and cash-on-cash?

Cap rate is unleveraged — NOI / price. Cash-on-cash is leveraged — annual cashflow after debt / cash invested. Always quote both.

Why does the calculator use a 5-year exit?

Most commercial deals are underwritten on a 5–10 year hold. Year-5 exit is the standard institutional baseline and matches typical bridge or 5-year fixed loan terms.

Does it model rent growth?

This is a year-1 stabilized model — it does NOT compound rent growth into the exit NOI. For a full pro forma with year-by-year rent escalators, build it out in Excel with this as your year-1 baseline.

Can I use this for syndications?

It's a good sponsor-side underwriting check. For LP-facing returns, layer on acquisition fees, asset management fees, the waterfall split, and refinance assumptions.