🏢 Commercial & Residential Property Valuation
Real Estate Cap Rate & NOI Calculator
Analyze investment property profitability, compute unleveraged Capitalization Rates (Cap Rate), Net Operating Income (NOI), and Gross Rent Multipliers (GRM).
Property Valuation & Revenue
Capitalization Rate (Cap Rate)
6.21%
Net Operating Income
$27,940 / yr
Gross Income (EGI)
$39,900 / yr
Gross Rent Multiplier
10.71x
💡 Real Estate Underwriting Summary:
This property generates $27,940 in annual Net Operating Income (NOI) after factoring in vacancy, property taxes, insurance, maintenance, and 8% management fees.
How to Calculate Cap Rate
The Capitalization Rate represents the unleveraged rate of return an investor would earn if purchasing a property 100% in cash:
$$\text{Cap Rate} = \frac{\text{Net Operating Income (NOI)}}{\text{Current Property Market Value}} \times 100$$
- NOI Excludes Debt: NOI calculates property operating performance before mortgage payments, income taxes, or depreciation.
- Comparing Assets: Cap rates enable apples-to-apples comparisons between commercial office buildings, single-family rentals, and multi-family apartment complexes.