Adjusting the sensitivity analysis range and assumptions

Where to find the sensitivity analysis

The sensitivity analysis lives in the Sensitivities tab of your Excel underwriting model. It shows how key returns (IRR, equity multiple, cash-on-cash) change across different assumption scenarios.

How to adjust the range

You can customize the sensitivity analysis assumptions by overriding the figures in the top table — specifically in column R of the Sensitivities tab. This is where the scenario inputs are defined.

After making your changes, click "Run Sensitivities" to recalculate the outputs. The sensitivity table will update to reflect your new floor, ceiling, and step values.

What you can customize

You can adjust the range for any assumption that feeds into the sensitivity table, including exit cap rate, rent growth, expense growth, and purchase price. Widening the range gives you a broader view of outcomes; narrowing it lets you focus on the scenarios you consider most likely.

Tips

If you want a quick sanity check across a wide range, set a low floor and high ceiling with larger steps. For a focused analysis to present to your investment committee, narrow the range to realistic scenarios with smaller increments.

The sensitivity analysis uses the same formulas as the rest of your model — it's not a separate calculation engine. Any changes you make to the core model assumptions will flow through to the sensitivity table when you re-run it.