Free tools / Expansion ROI
Expansion ROI
Check whether an expansion creates value: compare its stabilized yield on cost to the market cap rate.
Inputs
Example inputs, not market dataStarting values are made-up examples to show the math. They are not market data. Replace them with your own figures. Nothing you type leaves your browser.
Results
Updates as you typeHow this works
Added revenue = new units x rent x 12 x stabilized occupancyAdded NOI = added revenue - added opexYield on cost = added NOI / project costStabilized value = added NOI / market cap rateValue created = stabilized value - project costDevelopment spread = yield on cost - market cap rate(100 bps = 1 percentage point)
This is a stabilized snapshot. It does not include lease-up losses, carrying costs during construction, or timing. A thin spread leaves little room for those.
Want a second set of eyes on your numbers?
Request a Free Facility Review. We look at revenue, expenses, occupancy, and pricing and send back plain-English notes.