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Cap Rate Sensitivity

See how property value changes across 19 cap rates from 3% to 12% to find the deal's sweet spot.

How Sensitivity Analysis Works

The sensitivity table calculates implied property value at every half-point cap rate from 3% to 12%. A horizontal bar chart shows the full range visually, with your target cap rate highlighted. This reveals how much value swings with small cap rate changes and helps you bracket your bid range.

  • 19 cap rate points calculated from 3.0% to 12.0%
  • Your target cap rate row is highlighted in the table
  • Asking price reference line shows where the market sits
  • Instantly see the cap rate range where the deal is profitable

Why Small Cap Rate Changes Matter

A half-point cap rate change can shift property value by tens of thousands of dollars. At $25,740 NOI, the difference between a 5% and 6% cap rate is $85,800 in implied value. Sensitivity analysis shows this range at a glance so you know how much valuation risk you carry.

  • Understand the value impact of cap rate compression or expansion
  • See the full range from aggressive (3%) to conservative (12%)
  • Identify breakeven cap rate where calculated value equals asking price
  • Use the range to set your walk-away price and stretch offer

Sample Output

See what this feature calculates for you.

Cap Rate Sensitivity
Value at 5.0% $514,800
Value at 6.0% $429,000
Value at 7.0% $367,714
Value Swing (5-7%) $147,086

Ready to Use Cap Rate Sensitivity?

Get access to this feature and everything else in Cap Rate & Valuation Tool.