What is the DCF Analyzer?

The DCF (Discounted Cash Flow) Analyzer is an investment tool that calculates property values based on projected future cash flows discounted to present value.

When should I use DCF analysis?

Use DCF for commercial properties, multi-family investments, and properties valued primarily on income potential rather than comparable sales.

What inputs are needed for DCF analysis?

Inputs include projected rents, vacancy rates, operating expenses, capital expenditures, holding period, exit cap rate, and discount rate.

How does DCF differ from cap rate valuation?

Cap rate uses current income for a snapshot valuation. DCF accounts for future rent growth, expense changes, and time value of money for more comprehensive analysis.

Free Tool

DCF Analyzer

Discounted Cash Flow analysis for commercial real estate investments. Calculate Net Present Value (NPV), Internal Rate of Return (IRR), and equity multiple.

Investment Assumptions

Enter property cash flow projections

Initial Investment

Year 1 Net Operating Income (NOI)

NOI Growth Rate (%/yr)

Holding Period (years)

Exit Cap Rate (%)

Discount Rate (%)

DCF Analysis Results

Investment viability metrics

Net Present Value (NPV)

Below required return threshold

IRR

10.00%

Equity Multiple

0.00x

Total Cash Flow (undiscounted)$0

Terminal Sale Value$0

Projected Annual NOI

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

This analysis uses simplified assumptions. Actual returns depend on vacancy, capital expenditures, and market conditions.

How It Works

1. Enter Investment Details

Input your initial investment amount and Year 1 Net Operating Income (NOI).

2. Set Assumptions

Configure NOI growth rate, holding period, exit cap rate, and discount rate.

3. Review Analysis

Get instant NPV, IRR, and equity multiple calculations to evaluate the investment.

Frequently Asked Questions

The Best Free DCF Analyzer for Real Estate Investment

Making informed investment decisions requires understanding the true value of a property beyond its listing price. Our free Discounted Cash Flow (DCF) analyzer helps real estate investors evaluate commercial properties by calculating Net Present Value (NPV), Internal Rate of Return (IRR), and equity multiple based on projected cash flows.

Why DCF Analysis Matters

Unlike simple cap rate calculations, DCF analysis accounts for the time value of money, projected income growth, and your eventual exit. This provides a more complete picture of investment returns and helps you compare different opportunities on an apples-to-apples basis, even when they have different holding periods or growth trajectories.

Professional Investment Analysis

Our DCF analyzer uses the same methodology employed by institutional investors and commercial real estate firms. You can model different scenarios by adjusting NOI growth rates, exit cap rates, and discount rates to stress-test your investment thesis and understand how sensitive returns are to your assumptions.

Make Better Investment Decisions

Whether you are evaluating a multifamily property, retail center, or office building, DCF analysis provides the quantitative framework you need. Use our free tool to analyze potential acquisitions, set offering prices, or present investment opportunities to partners and lenders with confidence.