Feasibility calculator
A feasibility check compares what a facility would cost with the net income it could earn once it fills. Enter your costs and your own rent and expense assumptions to see NOI, value, yield on cost and a simple lease-up curve.
Cost
Use bids and quotes, not guesses.
Leave blank if you own the land.
Revenue and expenses
Every figure is yours. Nothing here is market data.
From competitors you have checked.
Months from opening to stabilized occupancy, 1 to 60.
Your results will show here
Fill in every field except land cost to see NOI, value, yield on cost and the lease-up curve.
How it works
- Gross potential rent = rentable sq ft x rent per sq ft per month x 12
- Collected rent = gross potential rent x stabilized occupancy
- NOI = collected rent − operating expenses (a percent of collected rent)
- Value = NOI ÷ cap rate
- Yield on cost = NOI ÷ (land + build cost)
- Lease-up occupancy in month m = stabilized occupancy x m ÷ lease-up months
Every number comes from you. The tool has no built-in market rents, costs or cap rates, so results are only as good as what you enter. Use rents you have confirmed near your site and costs from bids.
A yield on cost above the cap rate you entered means the finished facility would be worth more than it cost, if your assumptions hold. It ignores financing, taxes on income, and construction timing.
The lease-up table is a straight line from empty to stabilized occupancy, and it shows rent only. Real lease-ups are uneven.
Frequently asked questions
What rent per square foot should I use?
Use rents from competing facilities near your site that you have checked yourself, for the unit mix you plan to build. The tool does not supply market data.
What is yield on cost?
It is first-year stabilized NOI divided by the total cost of land and construction. It tells you the return on what you spend, before financing.
What is a good yield on cost?
Compare it with the cap rate you entered. When yield on cost is higher, the project creates value on paper. How much higher you need depends on your risk and your lender.
Does this include financing or taxes?
No. It looks at the property alone. Add debt, equity and tax effects in a full pro forma with your lender and CPA.
Is anything I enter saved?
No. The calculation runs in your browser.