ROI Calculator
What is more occupancy worth to your asset?
Enter your units, average rent and occupancy. The calculator shows the added units leased, the monthly and annual revenue gain, and the asset value impact at a 5% cap rate, with every step of the math visible so you can check it against your own underwriting.
Asset value impact $5,040,000 at a 5% cap rate. 14 additional units leased, $21,000 more revenue per month.
Asset value you could create at a 5% cap rate
$5,040,000
$21,000 monthly gain × 12 ÷ 0.05 = $5,040,000
- Additional units leased
- 14
- Monthly revenue gain
- $21,000
- Annual revenue gain
- $252,000
- Vacancy costs you today, per month
- $36,000
How this is calculated
- Additional units = 200 units × (95% − 88%) = 14, rounded down to whole units.
- Monthly gain = 14 × $1,500 = $21,000. Annual gain = monthly × 12 = $252,000.
- Asset value = annual gain ÷ 0.05 (a 5% cap rate) = $5,040,000. Every $1 of added annual NOI is worth $20 of value.
- Vacancy cost today = 24 empty units × $1,500 = $36,000 per month.
This is a scenario, not a promise. It treats the added rent as NOI; actual NOI lift is lower after the variable costs of each occupied unit, and cap rates vary by market and asset class.
The math, answered.
- How does occupancy change the value of an apartment property?
- Value follows NOI. Each additional leased unit adds its rent to income every month. Divide the added annual income by the cap rate to see its effect on value: at a 5% cap rate, every $1 of added annual NOI adds $20 of asset value.
- Why does the calculator use a 5% cap rate?
- It is a common reference point for stabilized multifamily. Your market and asset class may trade higher or lower; a higher cap rate gives a smaller value impact for the same income.
- Is the revenue gain the same as NOI?
- Not exactly. The calculator treats added rent as NOI to keep the math transparent. Real NOI lift is lower after the variable costs of each occupied unit, such as utilities and turnover.