Cap Rate Calculator: NOI and Property Value
Cap rate calculator: rent, losses you set, other income and operating expenses become NOI and a capitalization rate for the price or value; no loan approval.
What This Calculator Does
Six inputs become one year of operating numbers. Scheduled gross rent, less your vacancy and credit-loss allowance, plus other income already net of its own collection losses, gives total income. Subtract operating expenses to get NOI; the cap rate is that NOI over the purchase price or the property value. NOI may be negative or exactly zero. It isn't an appraisal, a market grade or full underwriting.
Who Is This For
Use it to check a property's yearly income before any financing, whether you're buying, own it already or advise clients. Count income and costs the same way on every property, and apply price or value consistently. You'll still need the property's records and a lender's own review.
How It Works
Begin by choosing purchase price or property value. Then fill in five amounts, entering 0 for any that is zero; all of them must describe the same 12 months. Enter rent as gross, before vacancy, and other income as the cash you actually received. Click Calculate to see six results plus five exact figures shown before rounding. Tiny values keep their plus or minus sign.
Frequently Asked Questions
What do NOI and cap rate mean in this calculator?
NOI is what remains of the year's income once vacancy and operating expenses come off. Cap rate = NOI ÷ the price or value you entered × 100. You get six results. Vacancy loss, net rent and total income come first, then NOI, the cap rate and the surplus or loss. The five exact figures are that same math before rounding. They add no metrics, and they aren't verified receipts.
How does it treat vacancy and other income?
Vacancy comes off rent, not other income. Enter gross annual scheduled rent before the allowance you set; other income is entered net of its own collection losses and gets added ahead of operating costs, so the rent loss never touches it. Say rent is US$60,000 and vacancy 10%, so US$54,000 remains. With US$3,000 of other income that's US$57,000; subtract US$18,000 in expenses, and NOI is US$39,000. Type collected rent as gross and you subtract vacancy again.
Can rent or expenses be zero, and can NOI go negative?
Yes, when you know the amount is 0; blank or unknown isn't zero. With a US$500,000 price, no operating income and expenses of US$10,000, NOI comes to −US$10,000 and the cap rate is −2%. That's an operating loss; it doesn't mean a lender will turn you down. Break-even means NOI is exactly 0, not rounded to 0 on screen. A positive NOI still comes before costs this tool leaves out.
Why use price or value rather than cash invested or project cost?
Because that's the denominator the cap rate uses: your price or the property's value, never the down payment or the cash you put in. $36,000 NOI ÷ a $500,000 price gives 7.2%. The same $36,000 NOI ÷ a $600,000 value gives 6%. Neither number is appraised here. Divide NOI by total project cost and you get yield on cost. Cash flow after the mortgage ÷ your own cash is cash-on-cash return. This calculator stands in for neither.
Which costs count as operating expenses?
Recurring yearly costs of running the property, defined consistently: property tax, management, property insurance, services the owner pays for and routine repairs. If other income carries its own costs, enter them once. Exclude capital improvements, depreciation, purchase costs, loan principal and interest, and financing insurance or fees. Property tax is in; the owner's income tax isn't. Reserve policies differ, and a lender's underwritten NOI is its own, not certified here.
What shows on screen for sub-cent amounts and tiny rates?
Losses figured as a percentage can leave fractions of a cent. A nonzero yearly amount under US$0.01 shows as a signed small value, never as 0, and a nonzero cap rate under 0.0001% does the same. Other amounts round to the nearest cent. Other rates show four decimals. Exact halves round away from zero. Raw method numbers can show up in scientific notation. The exact NOI sign decides surplus, loss or zero, never the rounded display.
Do the input limits or a high cap rate mean a good investment?
No. Each field tops out at $2 billion because of how the form is built, not because of any market or lender rule, and the 0–100% vacancy range is a form limit too. Rent and other income have their own fields, so total income and NOI may go as high as $4 billion. The cap rate itself is never cut off: it can pass 100% or go negative. The tool assigns no grades such as Excellent/Good, uses no regional benchmark and sets no 6% threshold. Every amount is required, and all must cover the same period.
What does the lender's glossary confirm, and what does it not confirm?
The CoreVest Finance glossary was consulted on October 3, 2026, to define operating expenses, GOI, NOI and the cap rate. The math baseline saved September 30 is separate, and it isn't an archived current-market dataset. The glossary doesn't check this property's numbers, set a regional benchmark, approve a loan or supply any average vacancy. Confirm the property's records, your cost definitions and your lender's requirements separately.