What is a sensitivity matrix?

A sensitivity matrix is a grid that shows how a single result changes as two assumptions vary. Here, each cell is the 5-year levered IRR for a combination of exit cap rate and annual NOI growth, so you can see how much the return depends on each.

How is each cell calculated?

For every combination of exit cap and NOI growth, the tool sizes the loan to LTV, projects each year's cash flow, computes net sale proceeds at the forward exit cap, and solves the dated cash-flow IRR. The center cell is your base case.

What inputs does it need?

The base deal (NOI, price, LTV, rate, amortization, hold, and selling costs) and the center and step for each axis (exit cap rate and NOI growth).

Sensitivity Matrix Calculator

✓Verified math. Every figure comes from one independently-tested engine, all checks passing.See how I verify →

See how the 5-year levered IRR swings with your two biggest unknowns: the exit cap rate and NOI growth. The center cell is your base case; every cell is a full dated-cash-flow IRR from the verified engine. Updates as you type.

Base deal

Net operating income (Yr 1, $)
Purchase price ($)
Loan-to-value (%)
Interest rate (%)
Amortization (years)
Minimum DSCR
Hold period (years)
Selling costs (%)

Axes (5 × 5 grid)

Exit cap center (%)
Exit cap step (%)
NOI growth center (%)
NOI growth step (%)

Base-case levered IRR—

Loan amount—

Equity invested—

Best cell (this grid)—

Worst cell (this grid)—

Each cell: loan = lower of the LTV and DSCR limits, exit = forward NOI ÷ exit cap, IRR solved on the dated cash flows.

Rows: NOI growth · Columns: exit cap rate · Cells: 5-year levered IRR

Educational tool only. Not financial, investment, tax, or legal advice. Loan is sized to the lower of the LTV and DSCR limits, and NOI grows at one rate; a real deal has more moving parts. Confirm every assumption.

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Sensitivity Matrix Calculator

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