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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.
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.