Cap Rate - NOI

This calculates the net operating income (NOI) of an income property. Enter the value (sales price) of the real estate. Enter the capitalization rate (cap rate).

Please do not use percentage or dollar characters or commas in the calculator.



Example

Fill in the value of the property (sale price – e.g., 1400500) by clicking on the green rectangle, typing the numbers, and striking the ENTER key.

Fill in the cap rate (e.g., 8.1) by clicking on the green rectangle, typing the numbers, and striking the ENTER key.

The calculator automatically calculates your answer of $113,442, which appears in the white rectangle.

Formula:   Value x Cap Rate = NOI

Another Example

To estimate the NOI, you find out what rate of return real estate investors expected to get in your market about the time the property was sold. Let's say your research shows that investors believed they would will get an 9.2% rate of return on their real estate investments. Their purchases at that time provided evidence of such an expectation.

Next find out what the sale price (value) of the property was. Let's say the property sold for $578,300.

The value times the cap rate will provide you the estimated NOI of the income property. In this case, the estimated NOI is $53,204.

Try it on the calculator above.