Calculate capitalization rate, property value, and NOI for real estate investments. Compare against market benchmarks by property type.
Frequently Asked Questions
What is a cap rate?
Cap rate (capitalization rate) is the ratio of Net Operating Income (NOI) to property value, expressed as a percentage.
It measures the expected rate of return on a real estate investment.
What is a good cap rate?
A good cap rate depends on property type and location.
Generally, 4-6% is considered low risk (Class A properties), 6-8% is moderate, and 8%+ indicates higher risk but potentially higher returns.
How do you calculate property value from cap rate?
Property Value = NOI / Cap Rate.
For example, if NOI is $100,000 and cap rate is 5%, the property value is $100,000 / 0.05 = $2,000,000.
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Editorial & Updates
- Author: SuperCalc Editorial Team
- Reviewed: SuperCalc Editors (clarity & accuracy)
- Last updated: 2026-01-13
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Financial/Tax Disclaimer
This tool does not provide financial, investment, or tax advice. Calculations are estimates and may not reflect your specific situation. Consider consulting a licensed professional before making decisions.