Capitalization Rate Calculator
What is Cap Rate?
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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
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2
Input Income Details
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3
Add Operating Expenses
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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