Risk Management

Sensitivity Analysis

Measuring how output (IRR, cash flow) shifts as inputs change.

Reviewed 9 August 2026 by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Identifies which assumption matters most so you stress-test the right thing.

Examples

IRR drops 400bps for each 1% increase in exit cap.

Common mistakes

Producing a sensitivity table without acting on it.

Sensitivity Analysis

Plain-English explanation

Examples

Common mistakes

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