> ## Documentation Index
> Fetch the complete documentation index at: https://help.parafin.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Investment assumptions

> Set operating expenses, margins, exit cap rate, and selling costs.

The **Investment** tab in **Edit Assumptions** sets the operating expenses and exit assumptions that turn revenue into returns. Adjust a field, then click **Recalculate** to refresh the outputs.

## Net Operating Income

| Field                   | What it means                                                         | Units              |
| ----------------------- | --------------------------------------------------------------------- | ------------------ |
| NOI Margin / GOP Margin | Choose how operating expenses are entered. See the toggle note below. | toggle             |
| Management Fee          | Hotel management fee.                                                 | % of Total Revenue |
| Property Taxes          | Annual property tax.                                                  | \$/key             |
| Insurance               | Annual property insurance.                                            | % of Total Revenue |
| Reserves                | Reserve for replacement, set aside each year.                         | % of Total Revenue |

The **NOI Margin / GOP Margin** toggle controls how net operating income is derived:

* **GOP Margin** — Parafin starts from gross operating profit and subtracts the management fee, property taxes, insurance, and reserves to reach NOI. Use this for a full expense breakdown.
* **NOI Margin** — you enter NOI as a single margin on Total Revenue. Use this for a quick top-down estimate.

The toggle also changes how the [Net Operating Income result table](/working-with-projects/result-tables#net-operating-income) reads.

## Investment

| Field            | What it means                                                                                | Units |
| ---------------- | -------------------------------------------------------------------------------------------- | ----- |
| Cap Rate at Sale | Capitalization rate used to value the asset at exit; a lower rate means a higher sale price. | %     |
| Selling Costs    | Transaction costs at sale, as a share of the sale price.                                     | %     |

For the outputs these inputs feed, see [Investment Returns](/working-with-projects/result-tables#investment-returns).