The Capitalization Rate (Cap Rate) is a key metric used in commercial real estate to estimate the potential return on an investment property. It's calculated by dividing the Net Operating Income (NOI) by the property's current market value or purchase price.
#capRateCalculator {
font-family: Arial, sans-serif;
border: 1px solid #ccc;
padding: 20px;
border-radius: 8px;
max-width: 500px;
margin: 20px auto;
background-color: #f9f9f9;
}
.form-group {
margin-bottom: 15px;
}
.form-group label {
display: block;
margin-bottom: 5px;
font-weight: bold;
}
.form-group input {
width: 100%;
padding: 8px;
border: 1px solid #ddd;
border-radius: 4px;
box-sizing: border-box;
}
#capRateCalculator button {
background-color: #4CAF50;
color: white;
padding: 10px 15px;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 16px;
}
#capRateCalculator button:hover {
background-color: #45a049;
}
#result {
margin-top: 20px;
font-size: 18px;
font-weight: bold;
color: #333;
}
function calculateCapRate() {
var noiInput = document.getElementById("netOperatingIncome");
var valueInput = document.getElementById("propertyValue");
var resultDiv = document.getElementById("result");
var noi = parseFloat(noiInput.value);
var propertyValue = parseFloat(valueInput.value);
if (isNaN(noi) || isNaN(propertyValue)) {
resultDiv.innerHTML = "Please enter valid numbers for both fields.";
return;
}
if (propertyValue <= 0) {
resultDiv.innerHTML = "Property Value must be greater than zero.";
return;
}
var capRate = (noi / propertyValue) * 100;
resultDiv.innerHTML = "Capitalization Rate (Cap Rate): " + capRate.toFixed(2) + "%";
}