Cap Rate Calculator
Calculate cap rate from NOI and property value, and estimate implied value at a target cap rate.
Core Inputs
Ready to Analyze
Enter property value and NOI to see the cap rate scorecard.
Why Use This Calculator
Calculate cap rate from NOI and property value, and estimate implied valuation using a target cap rate. Use this as a decision tool, then compare assumptions to real operating data over time.
Move from static cap rate snapshots to live NOI tracking.
Connect operating data in Abode so cap-rate assumptions stay tied to actual property performance.
Related Calculators
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Compute NOI from rent and expenses using quick ratio or detailed line-item assumptions.
DSCR Calculator
Calculate DSCR from NOI and debt service using annual or loan-derived inputs.
Rental Property ROI Calculator
Analyze rental deal returns with cap rate, cash-on-cash, DSCR, and a clear year-1 waterfall.
Frequently Asked Questions
What is cap rate formula?
Cap rate equals annual NOI divided by property value, expressed as a percentage.
Can I back into value from target cap rate?
Yes. Enter a target cap rate to see implied valuation from current NOI.
Does cap rate include financing?
No. Cap rate is unlevered and does not include debt service.
Key Terms (Plain English)
Cap Rate
Annual NOI divided by property value.
Example: Higher cap rate usually means higher return and often higher risk.
NOI
Net operating income before debt service and taxes.
Example: Use stabilized NOI for cleaner cap-rate comparison.
Implied Value
Property value inferred from NOI and a target cap rate.
Example: Value = NOI / Cap Rate.