Tools

Cap Rate Calculator

Find a property’s capitalization rate from its net operating income and value. Cap rate is a quick way to compare income properties and gauge relative value.

Get a Free Quote

Cap Rate Calculator

Enter net operating income and price to find the capitalization rate, or use a target cap rate to estimate value.

Enter NOI and price, then calculate.

What Our Clients Say

★★★★★

“I needed an SBA loan and found Select Commercial. It was obvious Stephen knew everything about commercial loans. If you are starting a small business, definitely give them a call.”

Larry S. · Washington, DC
★★★★★

“As a real estate attorney, I trust that Select Commercial will deliver apartment building loans and commercial mortgages in a timely manner. The rates and terms offered are excellent. I heartily recommend them.”

David S. · New York City
★★★★★

“I am a veterinarian who purchased an existing practice. I was surprised to find a company that offered 100% financing at a good rate, with great terms and rates for medical office financing.”

Carol K. · Chicago, IL
★★★★★

“Select Commercial offered 100% financing for my medical practice when my bank would have required 20% down. They delivered something my bank could not, and handled everything professionally.”

John C. · Boston, MA

Talk to a Loan Specialist

No cost, no obligation. Written answers within 48 hours on loans from $1,500,000.

  • No application or processing fees
  • Written answers within 48 hours
  • For 5+ unit and commercial properties, $1.5M and up
Request Your Free Quote Minimum loan size $1,500,000. No exceptions.

Frequently Asked Questions

What is a cap rate?
The capitalization rate is net operating income divided by property value, expressed as a percent. It is a quick measure of an income property’s yield.
What is a good cap rate?
It depends on property type, market and risk; lower cap rates generally reflect lower risk or stronger markets.
How is NOI defined?
Net operating income is gross income minus operating expenses, before debt service and income taxes.
Get My Free Quote
☎ Call (877) 548-9454