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

NOI

Annual net operating income in US dollars.

Property value

Property value or purchase price in US dollars.

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

Cap rate

Capitalization rate in percent per year.

• 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.

• Direct Capitalization Value

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

• Debt Yield

  Property debt yield: annual net operating income divided by loan principal.

• Debt Service Coverage Ratio Calculator

  Compute the debt service coverage ratio from annual net operating income and annual debt service.