Commercial deals require different metrics than residential. Freddie calculates NOI, cap rate, DSCR, and cash-on-cash return on any commercial property.
Dan White, 20-year fix-and-flip veteran in Northern Virginia, used FreeDealCalc to analyze a $130,000 wholetail opportunity in under 5 minutes. No spreadsheet. No paid software. Just Freddie.


"I've been flipping houses for 20 years and I built this tool because nothing free was actually good enough. Freddie does what I used to do with spreadsheets — but in seconds, for free, for every investor who needs it."
A buyer who purchases this property as a wholetail deal undertakes all renovation work at their own direction, cost, and risk. The seller makes no representations regarding property condition and all sales are as-is. Buyer is responsible for all due diligence, inspections, and compliance with local codes and regulations.
Commercial real estate is valued based on income (NOI ÷ Cap Rate) rather than comparable sales. Key metrics are NOI, cap rate, DSCR, and cash-on-cash return. Financing is different — typically 20-30% down, shorter terms, and based on property income rather than personal income.
NOI (Net Operating Income) = Gross Income minus Vacancy minus Operating Expenses. Operating expenses include taxes, insurance, management, maintenance, and reserves — but NOT debt service (mortgage). NOI is the pre-financing income from the property that drives its value.
Cap rates vary dramatically by property type and market. Class A multifamily in major metros: 4-5%. Retail and office (challenging sectors): 6-8%. Industrial: 4-6%. Smaller markets and value-add opportunities: 7-10%+. Always compare to local market cap rates for the specific property type.
Debt Service Coverage Ratio = NOI ÷ Annual Debt Service. Most commercial lenders require 1.20-1.25x DSCR minimum. A 1.25x DSCR means NOI is 25% above your loan payments — the lender's cushion if vacancy or expenses increase. Calculate this before applying for commercial financing.
Commercial property values are directly tied to NOI and cap rates: Value = NOI ÷ Cap Rate. If NOI is $100,000 and the market cap rate is 6%, value is $1,666,666. If cap rates compress to 5%, same NOI property is worth $2,000,000. Understanding this relationship is fundamental to commercial investing.
Multifamily 5+ units: most accessible, strong demand, proven financing. Industrial/warehouse: strong fundamentals, longer leases, simpler management. NNN retail (triple-net leases): passive income, tenant pays all expenses. Office and traditional retail: challenged by remote work and e-commerce trends.
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