Commercial Real Estate · Investment Tools
Cap Rate Calculator
Analyze commercial real estate using net operating income, property value, and capitalization rate. Calculate cap rate, implied property value, or the NOI required to achieve a target return.
01 / Property Analysis
$
$
02 / Investment Result
Estimated Capitalization Rate
7.50%
Based on annual NOI relative to the
property's purchase price.
Property value
$2,000,000
Annual NOI
$150,000
Monthly NOI
$12,500
Cap rate
7.50%
0%
5%
10%
15%+
Visual reference only. A higher or lower cap
rate is not inherently better. Risk, location,
property type, lease structure, tenant quality,
and market conditions should also be considered.
For illustrative purposes only. Net operating income should generally reflect property income less applicable operating expenses before debt service, depreciation, income taxes, and capital expenditures. Results are not an appraisal, investment recommendation, or representation of future performance.