Use this real-estate calculation for a transparent preliminary valuation, financing, income, expense, area, tax, return, or market scenario with explicit dates and assumptions.

Debt Fraction

Required number input.

Mortgage Constant Percent (percent)

Required number input.

Equity Yield Percent (percent)

Required number input.

Weighted cap-rate estimate from debt/equity financing shares and required debt/equity yields. The tool evaluates the supplied inputs together and returns the named outputs below; it does not infer omitted operating conditions or change the units shown.^[1]

Estimated Cap Rate Percent (percent)

The resulting estimated cap rate percent returned as a number.

• Real properties differ in location, condition, leases, zoning, title, taxes, financing, vacancy, capital needs, environmental risk, and market liquidity. Forecasts and ratios are not appraisals, loan offers, tax opinions, or investment advice.
• Use finite inputs in the displayed units and preserve more precision than the final presentation requires. Independently verify safety-critical, financial, compliance, or production decisions.

Reconcile assumptions to leases, operating statements, surveys, tax records, lender terms, comparable evidence, and physical inspection; test downside scenarios and obtain qualified local advice.

• Cap Rate Spread

  Signed spread in percentage points between a property cap rate and a financing rate.

• Cap Rate Calculator

  Compute the real-estate capitalization rate from annual net operating income and property value.

• Direct Capitalization Value

  Indicative property value from stabilized annual NOI divided by an assumed cap rate; not an appraisal.