FREE VALUATION CALCULATOR
Cap Rate Calculator
Calculate the unleveraged income yield from annual NOI and property value.
INDICATIVE RESULT
6.25%Annual NOI€750,000
Property value€12,000,000
Calculated directly from the assumptions shown.
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How the cap rate calculation works
Cap rate = annual net operating income ÷ property value.
Example calculation
€750k of sustainable NOI on a €12.0m value implies a 6.25% cap rate.
INVESTMENT USE
How professionals use the result
Use cap rate to compare stabilized property income with value. Ensure the NOI definition matches the market evidence.
Common mistakes
- Using EBITDA when comparable cap rates use NOI
- Deducting interest from NOI
- Ignoring normalized vacancy
- Combining forward NOI with a trailing cap rate
CLEAR ANSWERS