Cap Rate Calculator
Cap rate = NOI ÷ value. Click any i for detail.
Property
Annual NOI ($)
i
NOI
Net operating income — rent after vacancy and operating expenses, before debt service. |
|
|---|---|
Price or value ($)
i
Value
Purchase price or appraised value you are testing. |
How to use this calculator
- Enter trailing or pro forma NOI.
- Enter price.
- Read cap rate.
- Implied value at that cap is NOI ÷ cap if you shuffle inputs.
Results explained
Cap = NOI / price. Higher cap often means higher perceived risk or lower price. Mortgage payment is not in NOI.
Quick reference: cap rate
Compare apples (same NOI definition) across deals.
| Item | Detail |
|---|---|
| $28k NOI / $425k | 6.59% |
| DSCR | NOI vs PITIA — other page |
| Cash-on-cash | After debt — not here |
| Vacancy | Fold into NOI before you paste it |
Cap rates are going-in snapshots, not IRRs.
How the estimate is built
cap = NOI / value.
Example scenario
$28,000 NOI on $425,000 → 6.59%.
FAQ
Include mortgage?
No — cap is unlevered.
Taxes and insurance?
If they are operating expenses they sit in NOI already.
Stabilized vs in-place?
Say which NOI you entered.