Free Cap Rate Calculator
Where,
- NOI (Net Operating Income) = Annual Gross Income – Operating Expenses – Vacancy Loss
- Property Value = Total investment value of the property
Example:
If Property Value = $200,000, Annual Gross Income = $30,000, Operating Expenses = $5,000, and Vacancy Loss = $0:
NOI = 30,000 – 5,000 – 0 = 25,000
Cap Rate = (25,000 ÷ 200,000) × 100 = 12.5%