Property Value Calculator Based on Cap Rate
Our “Property Value Calculator” allows you to calculate the value of a property based on its “Cap Rate” and “NOI”.
When purchasing commercial real estate, you’ll often hear the term “Cap Rate,” it’s important to understand what a cap rate is and how it impacts your decision to purchase real estate.
When a “Cap Rate” is not mentioned. you’ll often be provided with gross income and operating expenses and a vacancy ratio. Using these numbers, you can use our “Cap Rate Calculator” to arrive at the Cap Rate.
If you have the Cap Rate, you can calculate the value of the property using the calculator below. This value is a good indicator of whether the property being considered is fairly priced.