Net Cost to Buy Commercial Real Estate

Enter values in the input fields (no commas, $ signs or % signs). Click on calculate and the form will automatically calculate and populate the entries for each row

Input Fields

PURCHASE ASSUMPTIONS

Ouput Fields
 

 

Building/SF (building square footage)

 

 

 

Price/SF (price per square foot)

 

 

 

 

Purchase Price

 

 

Improvement/SF ($ improvement per sq ft)

 

 

 

Total Improvement Cost

 

 

 

 

Total Building Value

 

 

 

 

Total Building Value PSF

 

 

 

 

EXPENSES

   

Purchase Price

 

 

 

Percent Down Payment (enter number)

 

 

 

 

Down Payment

 

 

 

 

Loan Amount

 

 

Loan Term (no of yrs)

 

 

 

Loan Interest Rate (number/decimal, no % sign)

 

 
   

Monthly Debt Service

 

 

Interest Expense

 

 
   

Annual Expenses (Taxes, Insurance & Maintenance

 

 
   

(Taxes=1.3% of purchase price, $5,000 CAM, Maint=$0.03 psf)

 
   
APPRECIATION/DEPRECIATION
   
   

Total Depreciable Improvements

 

 
 

Straight Line Depreciation (no of years)

 

 
   

Annual Depreciation Write-Off

 

 
 

Appreciation Rate (number/decimal, no % sign)

 

 
   

OWNER INVESTMENT RETURN

   
   

Tax Savings (@45%) (Depreciation)

 

 
   

Appreciation

 

 
   

1st Year Equity

 

 
   

Total Return On Investment

 

 
   

Investment Return On Cash Down Payment (First Year)

 

 
   

NET COST TO BUY

   
   

Annual Loan Payments & Expenses

 

 
   

Less Investment Return

 

 
   

Net Cost To Buy

 

 
   

Net Cost To Buy/Month

 

 
   

Occupancy Cost PSF (Industrial Gross):

 

 
     
 
   
 
     
 
 
Developed by Doug De Loy based on spreadsheet created by Bob Ferraro