FinancialTools.io
Self-Storage Investment Calculator
Property
Financing
Operations
Market Analysis
Exit Strategy
Investment Analysis Results
Cash-on-Cash Return
8.2%
Cap Rate
7.5%
Internal Rate of Return
15.4%
Total ROI
132.6%
Annual Cash Flow
$48,950
Payback Period
4.8 years
Debt Coverage Ratio
1.38
Break-Even Occupancy
62.5%
Projected Cash Flow Analysis
Annual Cash Flow
Valuation Analysis
Tax Benefits
Sensitivity Analysis
| Year | Gross Income | Expenses | NOI | Debt Service | Cash Flow | Cash-on-Cash |
|---|---|---|---|---|---|---|
| 1 | $643,750 | $225,313 | $418,438 | $369,488 | $48,950 | 8.2% |
| 2 | $689,613 | $234,268 | $455,344 | $369,488 | $85,856 | 14.3% |
| 3 | $717,197 | $243,647 | $473,550 | $369,488 | $104,062 | 17.3% |
| 4 | $738,713 | $251,762 | $486,951 | $369,488 | $117,463 | 19.6% |
| 5 | $760,874 | $258,697 | $502,177 | $369,488 | $132,689 | 22.1% |
| 6 | $783,701 | $266,458 | $517,243 | $369,488 | $147,755 | 24.6% |
| 7 | $807,212 | $274,452 | $532,760 | $369,488 | $163,272 | 27.2% |
| Metric | Value | Notes |
|---|---|---|
| Purchase Price | $1,000,000 | Initial investment |
| Renovation Costs | $100,000 | Property improvements |
| Total Investment | $1,100,000 | Purchase + Renovation |
| Year 7 NOI | $532,760 | Final year net operating income |
| Exit Cap Rate | 6.5% | Cap rate at time of sale |
| Projected Sale Price | $8,196,308 | Based on NOI / Cap Rate |
| Remaining Loan Balance | $642,195 | Mortgage balance at sale |
| Selling Costs | $327,852 | 4% of sale price |
| Net Sale Proceeds | $7,226,261 | After loan repayment and costs |
| Equity Multiple | 2.33x | Total return / equity invested |
| Year | Depreciation | Interest Expense | Taxable Income | Tax Savings |
|---|---|---|---|---|
| 1 | $40,000 | $41,250 | $337,188 | $25,250 |
| 2 | $40,000 | $40,423 | $374,921 | $25,131 |
| 3 | $40,000 | $39,542 | $394,008 | $24,869 |
| 4 | $40,000 | $38,602 | $408,349 | $24,588 |
| 5 | $40,000 | $37,599 | $424,578 | $24,288 |
| 6 | $40,000 | $36,529 | $440,714 | $23,966 |
| 7 | $40,000 | $35,388 | $457,372 | $23,622 |
IRR Sensitivity Analysis
| Exit Cap Rate (%) | -10% Rental Rates | Base Case | +10% Rental Rates |
|---|---|---|---|
| 5.5% | 13.8% | 18.2% | 22.6% |
| 6.5% | 11.2% | 15.4% | 19.7% |
| 7.5% | 9.1% | 13.2% | 17.3% |
Break-Even Analysis
| Variable | Break-Even Point | Current Value | Margin of Safety |
|---|---|---|---|
| Occupancy Rate | 62.5% | 92.0% | 29.5% |
| Rental Rate ($/sqft) | $0.85 | $1.25 | 32.0% |
| Operating Expenses | 61.2% | 35.0% | 26.2% |