Multi-Unit Sub-Metering ROI Calculator

Calculate the forced appreciation, return on investment, and payback period of installing sub-meters (hydro/water) and shifting utility costs to tenants.

Number of Units

Installation Cost per Unit ($)

Current Monthly Utility Cost per Unit ($)

The cost you currently pay that will be shifted to the tenant.

Market Cap Rate (%)

Used to calculate the forced appreciation on the property value.

Investment Overview

Total Installation Cost

One-time capital expenditure

Annual Expense Reduction

Increase to Net Operating Income (NOI)

Cash-on-Cash Return

Payback Period

years

Forced Property Value Appreciation

Net Value Creation (After Cost)

How this works

By installing sub-meters, you shift utility costs directly to tenants. This reduces your operating expenses, which directly increases your Net Operating Income (NOI). In commercial real estate valuation, an increase in NOI results in a disproportionate increase in total property value based on the market capitalization (cap) rate.