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Cap Rate Calculator

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Derive cap rate from value or implied value from a target cap rate.

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Your information stays on your device and is not uploaded.

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Build NOI from income and expenses, then either compute cap rate from property value or solve for implied value from a target cap rate.

Cap rate summarizes income return independent of financing—useful for comparing properties across markets. It ignores appreciation, tax benefits, and loan leverage.

NOI should exclude mortgage payments and capital expenditures you treat separately. Inconsistent NOI definitions distort comparisons.

Lower cap rates often imply lower perceived risk or stronger growth markets; higher cap rates may signal risk or value-add opportunity.

How to use this tool

Enter income and expenses, choose mode, and provide either property value or target cap rate. Vacancy loss can be entered as dollars or a percent of gross rent.

Worked example

NOI of ~$33,600 on a $500,000 property is about a 6.7% cap rate; at a 6% target cap the implied value is higher.

When to use this

  • Screening rental listings against your target yield.
  • Explaining property pricing to partners using NOI math.
  • Back-solving value from market cap rates on stabilized assets.

Common mistakes

  • Using gross rent instead of NOI in the denominator.
  • Ignoring capex reserves when computing NOI.
  • Comparing cap rates across asset classes with different risk profiles.

How it works

Computes NOI from income and expenses, then either derives cap rate from property value or implied value from a target cap rate.

Limitations

Estimates only for educational purposes. Not financial, tax, or legal advice. Verify figures with your lender, advisor, or official IRS/SSA sources before making decisions.

Privacy and file handling

Your data stays on your device and is not uploaded.

FAQ

Frequently asked questions

What formula is used?

Cap rate = NOI ÷ property value. Value = NOI ÷ cap rate.

Should I use purchase price or market value?

Use the value basis you care about—purchase price for deal analysis or market value for current yield.

Is Cap Rate Calculator free to use?

Yes. Utilnivo tools are free to use and do not require an account.

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