Saved

Capitalization Rate Calculator

What is Cap Rate?

cap_rate_detailed_explanation

When to Use Cap Rate

✓Comparing different investment properties
✓Evaluating market conditions
✓Determining property value
✓Assessing investment risk

Cap Rate Interpretation

4-6%:Lower risk, stable properties in prime locations
6-8%:Moderate risk, good locations with growth potential
8-10%+:Higher risk, potentially higher returns, emerging locations

How to Use This Calculator

1

Enter Property Value

property_value_instruction

2

Input Income Details

income_details_instruction

3

Add Operating Expenses

operating_expenses_instruction

Understanding NOI

noi_explanation

Income Includes

• Rental income
• Parking fees
• Vending machines
• Other property-generated income

Operating Expenses Include

• Property taxes
• Insurance
• Utilities
• Maintenance and repairs
• Property management

Important Considerations

⚠️

Cap rates vary by market, property type, and location

⚠️

Higher cap rates generally indicate higher risk

⚠️

Consider market trends and property condition

⚠️

Cap rate is one of many investment metrics

Calculate Cap Rate