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Portfolio Valuation Roll Up Calculator

Portfolios trade at different multiples than individual assets.

$
%
%

Portfolio premium

$62,608,696

Individual sum value

$720,000,000

Portfolio value

$782,608,696

How the math works

Individual value = NOI / individual cap. Portfolio value = NOI / portfolio cap. Premium = difference.

$45M / 6.25% = $720M. vs $45M / 5.75% = $783M. $63M portfolio premium — material for sellers.

How to Use

  1. Enter aggregate NOI.
  2. Enter individual cap rate %.
  3. Enter portfolio cap rate % (lower).
  4. Read portfolio premium.

Frequently Asked Questions

Premium or discount?

Institutional portfolios trade at cap rate 25-75 bps lower than individual assets (premium). Reason: scale, geographic diversification, operational efficiency, institutional appeal. Small/mixed portfolios may trade at discount (complexity penalty).

Driver factors?

Geographic concentration (positive: dominance; negative: single-market exposure). Asset class focus (positive: expertise; negative: diversification). Management platform (positive: turnkey). Debt (positive: assumable low-rate; negative: high-rate).

When to roll up?

Pre-sale: 6-18 months preparation allows platform story. Financial audits, standardized reporting, common systems. Marketing as 'portfolio' vs individual deals. Typical portfolio premium captures $10M-100M+ on mid-size portfolios.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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