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Property Repositioning ROI Calculator

Property repositioning rolls many upgrades. This calculator sizes total ROI.

$
$
$
%

Value created

$8,782,609

Yield on cost

18.04%

MOIC

3.14

How the math works

Value created = NOI lift ÷ exit cap. Yield on cost = NOI lift ÷ spend. MOIC = value ÷ spend.

Target yield on cost 200-300 bps above exit cap rate. Tighter spreads don't compensate for execution risk — especially on repositions lasting 18-36 months where market cap rates can move against you before stabilization captures the value created.

How to Use

  1. Enter total repositioning spend.
  2. Enter stabilized annual rent lift.
  3. Enter other NOI uplift (other income, expense reduction).
  4. Enter exit cap rate %.
  5. Read value created and yield on cost.

Frequently Asked Questions

Value creation math?

NOI lift ÷ exit cap rate = value created. Yield on spend = NOI lift ÷ spend. 10-15% yield on cost typically creates 150-250% value over spend at 5-6% cap rate. Basic lever in value-add strategy.

Where repositioning wins?

B/C properties in A/B markets (pull rent toward market). Underperforming properties under prior ownership (tighten opex). Dated amenity sets in amenity-competitive markets. Each has 150-300 bps of value-add spread potential.

Risks?

Market rent cap (can't push above comp set). Overbuild (too luxe for market). Construction overrun. Tenant disruption during reposition. Budget 15-25% contingency and test pricing assumptions against actual comp leases.

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