Ship Investment ROI, Equity IRR, Cash-on-Cash Return & Exit Value Tool

Vessel Acquisition • Equity IRR • Cash-on-Cash • NPV • MOIC • Debt Paydown • DSCR • Drydock CAPEX • Exit Value • Sensitivity

Ship Investment ROI, Equity IRR, Cash-on-Cash Return & Exit Value Tool

Underwrite a ship acquisition from the owner/investor side. Simple mode turns purchase price, leverage, vessel cash flow and exit assumptions into equity return metrics. Advanced mode builds a year-by-year maritime cash-flow model using TCE or direct operating cash flow, debt amortization, drydock/retrofit CAPEX, cash adjustments, exit proceeds and downside sensitivity.

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Fast acquisition screen: 10 inputs. Simple assumes level annual pre-debt vessel cash flow and a fully amortizing annual-payment loan. Any remaining loan balance is repaid from sale proceeds at exit.

Equity returnIRR, ROI, MOIC & cash-on-cash

DebtAnnual service & exit balloon

ExitNet sale proceeds & equity value

Ship Investment Snapshot

Vessel purchase price Million currency units.

Acquisition costs % of purchase price. Legal, inspection, fees, closing costs, etc.

Debt financing % of purchase price funded by debt.

Loan interest rate Annual %.

Loan amortization Years, level annual debt service.

Annual vessel cash flow before debt Million/year after vessel operating costs, before debt service and tax.

Investment holding period Years.

Gross exit / sale value Million at end of holding period.

Selling costs % of gross sale value.

Required / hurdle return Annual % used for equity NPV comparison.

Acquisition & Capital Structure

Vessel purchase price Million currency units.

Acquisition / closing costs % of purchase price.

Debt financing / LTV % of purchase price.

Loan interest rate Annual %.

Interest-only period Years. 0 = immediate amortization.

Amortization after IO Years of level annual principal + interest after IO.

Holding period

Required / hurdle return Annual % for NPV and return comparison.

Minimum DSCR target User/lender criterion.

Target equity IRR User investment target.

Target Year-1 cash-on-cash User investment target.

Vessel Operating Cash Flow

Choose a TCE-based maritime model or enter direct annual vessel cash flow. TCE is treated as revenue net of voyage expenses but before vessel OPEX, owner overhead, CAPEX and debt service.

Base TCE / net vessel earnings Currency/day.

Revenue-earning days Days/year. Use this to reflect off-hire / idle time.

Base vessel OPEX Currency/day, applied over 365 days.

Owner / management overhead Million/year.

Annual TCE growth %/year.

Annual OPEX / overhead inflation %/year.

Year-1 vessel cash flow before debt Million/year after operating costs, before CAPEX, debt and tax.

Annual cash-flow growth %/year.

Exit / Vessel Value

Exit valuation method

Gross exit / sale value Million. Used when direct exit mode is selected.

Annual vessel value change %/year. Used when projected exit mode is selected.

Minimum / scrap-value floor Million. Optional downside floor.

Selling / disposal costs % of gross exit value.

Drydock / Retrofit / Major CAPEX Register

Amounts are equity-funded outflows in the selected year unless separately financed outside this model.

Use	Year	CAPEX item	Amount (million)

Other Equity Cash Adjustments

Use positive amounts for cash inflows and negative amounts for additional equity outflows such as uninsured losses, special projects, claims, bonuses or one-off owner costs.

Use	Year	Adjustment	Amount (million, +/-)

Investment Underwriting Checks

Purchase price / valuation basis reviewed Acquisition price is supported by an independent or market-based vessel-value view. Earning-days assumption stress-tested Off-hire, drydock and idle days are not double-counted or ignored. TCE / charter assumptions supported Base earnings and growth are tied to a credible charter or market scenario. OPEX and management costs reviewed Crew, insurance, maintenance, stores and management assumptions are credible. Drydock / special survey CAPEX included Known major cash requirements during the hold are captured. Debt terms matched financing indication Interest, leverage, IO and amortization assumptions reflect the proposed facility. Exit value independently challenged Sale value is not simply chosen to force the desired return. Tax / structure treated separately This model is pre-tax unless taxes are entered as explicit cash adjustments.

Investment boundary: this is a decision-modeling tool, not investment, lending, tax, legal or valuation advice. Shipping cash flows and vessel values can be highly cyclical. Financing documents, covenants, taxes, sanctions, insurance, charter terms, class status and vessel condition can materially change the actual economics.

By the ShipUniverse Editorial Team — About Us | Contact