Cap Rate Calculator
Calculate cap rate from NOI and price, or reverse-calculate property value from your target cap rate.
How the Cap Rate Calculator Works
Cap rate equals net operating income divided by property value. This tool runs the formula both ways: enter price and NOI to get cap rate, or enter your target cap rate and NOI to find the implied property value. All income and expense fields auto-populate from your property data with full override support.
- Forward calculation: NOI / Price = Cap Rate
- Reverse calculation: NOI / Target Cap Rate = Implied Value
- Auto-populates rent, vacancy, and expenses from your property
- Override any field without changing your saved property data
Why Cap Rate Is the Starting Point
Cap rate strips out financing and shows the property's return on its full market value. A 6% cap rate means the property generates 6 cents of NOI per dollar of value. Comparing cap rates across properties lets you spot the best risk-adjusted deals before you factor in leverage.
- Compare properties on a level playing field regardless of financing
- Identify overpriced properties before making an offer
- Understand how much return the property generates unlevered
- Use as a quick screening filter when evaluating deals
Sample Output
See what this feature calculates for you.
Ready to Use Cap Rate Calculator?
Get access to this feature and everything else in Cap Rate & Valuation Tool.