Quick-screen a value-add deal: the yield you build to, the spread over your exit cap, and the value created. Updates as you type.
Going-in cap rate—
Yield-on-cost (stabilized)—
Spread over exit cap—
Stabilized value—
Value created—
Yield-on-cost = Stabilized NOI ÷ (Price + Reno) · Spread = Yield-on-cost − Exit cap
A positive spread is not guaranteed. If your yield-on-cost is below the exit cap, the deal destroys value, the calculator will show a negative spread, not a cushion.
Educational tool only. Not financial, investment, tax, or legal advice. A real value-add deal models lease-up timing, capital phasing, and financing; this is a first-pass screen.
Want to underwrite the whole reposition? Value-Add CRE walks find, underwrite, and execute.