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Real Estate Pro Forma Template (Free Excel)

A 7-tab institutional model with unit mix analysis, 12-category expenses, 10-year cash flow projection, IRR calculations, and exit cap sensitivity analysis. Pre-loaded with a 150-unit Sunbelt value-add deal.

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7 worksheets
150-unit sample deal
IRR + sensitivity matrix
proforma-template.xlsx
Year 1 Pro Forma
Unit Mix
Assumptions
10-Yr Proj
Returns
CapEx
Year 1 Pro Forma
Annual $/Unit
Revenue
Gross Potential Rent
$2,925,420 $19,503
Loss-to-Lease ($308,628)
Other Income $72,000
Less: Vacancy (5%) ($134,440)
Effective Gross Income $2,554,352
Operating Expenses (12 categories)
Property Taxes $270,000
Insurance $81,000
Management (4%) $102,174
+ 9 more line items...
Total OpEx ($1,177,674)
Net Operating Income $1,376,678
Less: Debt Service ($797,176)
Cash Flow (Year 1) $523,252
CoC
7.2%
IRR
16.4%
EM
2.1x
DSCR
1.73x
150-unit model

A real estate pro forma is a financial projection that estimates a property's income, expenses, and investment returns over a hold period. It models gross potential income, vacancy, operating expenses, net operating income (NOI), debt service, and cash flows to calculate returns like IRR, cash-on-cash, and equity multiple.

Pro forma analysis is the foundation of real estate underwriting. Whether you're evaluating a 50-unit multifamily, a self-storage facility, or a retail strip center, the pro forma tells you if the deal makes financial sense. It answers the critical question: What returns can I expect, and at what risk? For expense benchmarks, refer to the NAA Income & Expense Survey. For cap rate assumptions, see CBRE's Cap Rate Survey.

Template Contents

Everything you need to underwrite deals

7 worksheets covering the full institutional underwriting workflow, from unit-level rent analysis to sensitivity-tested returns.

Unit Mix & Rent Analysis

Aggregated by unit type with market rent, in-place rent, loss-to-lease, and vacancy tracking. 150-unit sample deal pre-loaded with real-time summary dashboard.

12-Category Expense Breakdown

NAA survey-aligned expense categories with $/unit column: taxes, insurance, management, payroll, R&M, turnover, marketing, utilities, admin, contracts, landscaping, and reserves.

Debt & Amortization Modeling

Full 10-year amortization schedule with IO period support. PMT-based debt service, proper remaining balance at exit (no hardcoded payoff hacks).

10-Year Cash Flow Projection

Revenue, expenses, NOI, and cash flow projected across 10 years. Renovation income phases in automatically from the Capital Plan with adjustable capture rates.

IRR, Equity Multiple & Returns

Levered and unlevered IRR with visible cash flow arrays. Equity multiple, cash-on-cash, DSCR, entry cap, and exit analysis with CHOOSE()-based hold period flexibility.

Sensitivity Analysis

5x5 equity multiple matrix varying exit cap rate (4.5%-6.5%) against rent growth (1%-5%). Color-coded with conditional formatting so you can spot risk at a glance.

Quick Start

How to use this pro forma

Five steps to underwrite a multifamily acquisition.

01

Enter acquisition assumptions

Input purchase price, closing costs, and loan terms (LTV, rate, amortization). The template calculates your equity requirement automatically.

02

Build the unit mix

Enter each unit's type, square footage, market rent, and contract rent on the Unit Mix tab. The template calculates loss-to-lease and net effective rent automatically.

03

Apply growth assumptions

Set annual rent growth, expense inflation, and vacancy trends. The model projects all 10 years automatically based on your inputs.

04

Set exit assumptions

Choose your exit cap rate and hold period. The template calculates sale price, disposition costs, and net proceeds.

05

Review returns & sensitivity

Check the Returns tab for levered IRR, equity multiple, and cash-on-cash. Use the 5x5 sensitivity matrix to stress-test across exit cap rates and rent growth scenarios.

Key Metrics

Understanding pro forma returns

IRR

Internal Rate of Return

The annualized return that makes NPV of all cash flows equal to zero. Accounts for timing of distributions. Target: 15-20%+ for value-add deals.

2.0x

Equity Multiple

Total distributions divided by total equity invested. A 2.0x multiple means you double your money. Doesn't account for timing.

7%

Cash-on-Cash

Annual cash flow divided by total equity invested. Measures year-by-year cash yield. Target: 6-10% in year one, growing over time.

5.5%

Cap Rate

NOI divided by property value. Unlevered return on the asset. Entry cap rate vs. exit cap rate spread drives a lot of the return. See Fannie Mae's Multifamily Guide for lender-required cap rate assumptions.

FAQ

Common questions

What's the difference between pro forma and actuals?

A pro forma is a projection of future performance based on assumptions you control. Actuals (like the T12) show historical performance. You use actuals as a baseline to build a realistic pro forma. The gap between T12 actuals and your pro forma represents the value you plan to create through rent increases, expense reductions, or operational improvements.

What hold period should I use?

Most CRE pro formas use a 5, 7, or 10-year hold period. This template defaults to 10 years, but you can adjust the exit year. Shorter holds are more sensitive to exit cap rate assumptions.

How do I stress-test the deal?

Use the built-in 5x5 sensitivity matrix on the Returns tab. It varies exit cap rate (4.5%-6.5%) against rent growth (1%-5%) and shows equity multiples for each scenario. You can also adjust vacancy, expense inflation, and hold period on the Assumptions tab to see how returns shift.

What asset types does this work for?

This version is built for multifamily acquisitions with unit mix analysis, loss-to-lease tracking, and renovation premium modeling. The expense categories match NAA survey standards. The core pro forma structure (NOI, debt service, returns) also works for self-storage, retail, and other income-producing properties with minor adjustments.

Can I automate the data entry?

Yes. Primer extracts rent roll and T12 data from any document and maps it directly to your pro forma. No manual typing required.

Automate it

Rent rolls don't aggregate themselves

This template models a 150-unit deal. Your rent roll has the actual numbers. Primer extracts them from any document and fills the Unit Mix tab automatically. No manual data entry.

  • Works with any rent roll or T12 format
  • Maps to YOUR Excel templates
  • 98%+ accuracy with source citations
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