- Fill in Net Operating Income (NOI), and Property Value. Each control is labeled; you do not need to paste a JSON blob.
- Click "Calculate" to run the tool in your browser.
- Read the result below the form and copy it if you need it in another app.
Cap Rate Calculator (Real Estate)
The Cap Rate Calculator (Real Estate) is a tool to determine the capitalization rate of...
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How to Use This Tool
Learn More About Cap Rate Calculator (Real Estate)
Understanding Capitalization Rate (Cap Rate)
The capitalization rate (cap rate) is a financial metric used to estimate the potential rate of return on a real estate investment. It represents the ratio of Net Operating Income (NOI) to the current market value of the property.
Cap Rate Formula
Cap Rate = (Net Operating Income / Current Property Value) * 100
About
The Cap Rate Calculator (Real Estate) is a tool to determine the capitalization rate of a property. By inputting the Net Operating Income (NOI) and Current Property Value, you can calculate the Cap Rate percentage, which is a key metric in real estate investment analysis.
Examples
Valid NOI and property value.
NOI, property value
Input
{
"noi": 100000,
"property_value": 1000000
}Output
Cap rate: 10.00% ($100000 NOI / $1000000 value)
Another valid NOI and property value.
NOI, property value
Input
{
"noi": 50000,
"property_value": 750000
}Output
Cap rate: 6.67% ($50000 NOI / $750000 value)
Use Cases
- Evaluating the profitability of a real estate investment
- Comparing different investment properties
- Assessing the risk associated with a real estate investment
- Determining the fair market value of a property