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Sensitivity Analysis and Target Solver

Test one driver, two drivers, or several ranges. Find a supported input that reaches a selected target.

Actual Model interface · Sample project

Model sensitivity and solver workspace

Model sensitivity and solver workspace

Actual Model interface · Sample project

Launch FeatureIllustrative product preview

Test the Assumptions.

Change the question without losing the starting point. Each analysis helps you examine a different relationship.

One-Way

Vary one input across a selected range and compare its effect on a return measure.

Two-Way

Test combinations of two inputs to see how they interact.

Tornado

Compare driver effects over selected ranges to see which assumptions deserve attention.

02 / One moving part

One Input. A Range of Results.

This worked example varies construction cost per square foot. The base row stays marked so you can compare the effect on cost, equity, cash, and return.

Fictional property / One-driver testIllustrative costs · Fixed range
The question

What if build cost changes?

One input changes: construction cost per SF.

Area
10,000 SF
Other costs
$650,000
Debt share
60%
Interest-only rate
6.5%
NOI
$210,000
Illustrative construction cost sensitivity. Annual cash is after interest. The $185 per SF row is the canonical base case.
Cost/SFTotal costEquityAnnual cashCash-on-cash
$175$2,400,000$960,000$116,40012.13%
$185Base case$2,500,000$1,000,000$112,50011.25%
$195$2,600,000$1,040,000$108,60010.44%
$205$2,700,000$1,080,000$104,7009.69%
$215$2,800,000$1,120,000$100,8009.00%
How this still is calculated

Total cost = 10,000 SF × Cost/SF + $650,000. Loan = total cost × 60%. Equity = total cost − loan. Annual cash = $210,000 NOI − loan × 6.5%. Cash-on-cash = annual cash ÷ equity.

A fixed one-driver table, using the same sample as the plan comparison. Annual cash is after interest. The $185/SF row matches the Base case. Costs are illustrative, not current regional prices. Net operating income (NOI) is income after operating expenses. A simplified example with interest-only debt. It leaves out fees, taxes, principal payments, and changes over time.

Work Back From a Target.

The solver finds a supported input that reaches a selected result. Review the proposed change before applying it.

Start at the Result.

Choose the return measure and target you want to test. The target belongs to this question, not to every project.

Workflow illustration · This website does not run a solve.

Target
A return measureSet the result you want to reach.
Driver
An input you chooseDefine the variable and the supported range.
Review
A proposed changeCompare the result before applying it.

Define What Can Change.

Select a supported input, such as land price, and the range the solver can examine. Keep the rest of the plan in view.

Model's calculation engine evaluates the result.

Target
A return measureSet the result you want to reach.
Driver
An input you chooseDefine the variable and the supported range.
Review
A proposed changeCompare the result before applying it.

Decide With the Work in View.

Review the proposed input and resulting returns. Compare the plan, then choose whether to apply the change.

A target is an assumption to examine, not a prediction.

Target
A return measureSet the result you want to reach.
Driver
An input you chooseDefine the variable and the supported range.
Review
A proposed changeCompare the result before applying it.

The proposed plans place one-way tests in Free, deeper comparisons in Pro, and two-way tests and the solver in Business. Packaging is under review.

FAQ

Questions about sensitivity.

Does a sensitivity test predict the future?

No. It shows how the model responds to the assumptions you choose.

Can I change the range?

Yes. Select a supported input, range, and return measure. This website illustration uses a fixed range rather than running an analysis.

Related

Sensitivity Analysis and Target Solver.