Rate Cap - NPV

This Excel-based tool helps real estate investors and analysts evaluate the net present value (NPV) of an interest rate cap on floating-rate debt. By inputting key assumptions such as loan amount, benchmark rate (SOFR), spread, cap strike, and discount rate, the model calculates:

• Present Value of the Rate Cap

• Cost of the Rate Cap

• NPV of the Rate Cap – showing whether the hedge is accretive

The model includes a simple input section and a built-in rate cap pricing table, making it easy to compare scenarios and assess the cost-benefit tradeoff of purchasing an interest rate cap.

Perfect for real estate underwriting, debt structuring, and risk management analysis.