Capitalization Rate (Cap Rate) Calculator
The Capitalization Rate, or Cap Rate, is a key metric used by real estate investors to analyze the profitability of an income-generating property. It represents the ratio between the Net Operating Income (NOI) and the property's market value or purchase price. A higher cap rate generally indicates a more profitable investment, assuming similar risk profiles. It's a quick way to compare different investment opportunities.
function calculateCapRate() {
var annualRentalIncome = parseFloat(document.getElementById("annualRentalIncome").value);
var annualOperatingExpenses = parseFloat(document.getElementById("annualOperatingExpenses").value);
var propertyValue = parseFloat(document.getElementById("propertyValue").value);
var capRateResultDiv = document.getElementById("capRateResult");
if (isNaN(annualRentalIncome) || isNaN(annualOperatingExpenses) || isNaN(propertyValue)) {
capRateResultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (propertyValue <= 0) {
capRateResultDiv.innerHTML = "Property Value must be greater than zero.";
return;
}
var netOperatingIncome = annualRentalIncome – annualOperatingExpenses;
if (netOperatingIncome < 0) {
capRateResultDiv.innerHTML = "Net Operating Income cannot be negative for this calculation.";
return;
}
var capRate = (netOperatingIncome / propertyValue) * 100;
capRateResultDiv.innerHTML = "The Cap Rate is:
" + capRate.toFixed(2) + "%";
}
.calculator-wrapper {
font-family: sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ccc;
border-radius: 8px;
background-color: #f9f9f9;
}
.calculator-wrapper h2 {
text-align: center;
color: #333;
margin-bottom: 20px;
}
.calculator-wrapper p {
color: #555;
line-height: 1.6;
margin-bottom: 30px;
}
.calculator-inputs {
display: grid;
grid-template-columns: 1fr;
gap: 15px;
margin-bottom: 25px;
}
.input-group {
display: flex;
flex-direction: column;
}
.input-group label {
margin-bottom: 5px;
font-weight: bold;
color: #444;
}
.input-group input[type="number"] {
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 1rem;
box-sizing: border-box; /* Ensures padding and border are included in the element's total width and height */
}
.calculator-inputs button {
padding: 12px 20px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
font-size: 1.1rem;
cursor: pointer;
transition: background-color 0.3s ease;
justify-self: center; /* Centers the button if grid column is wider */
}
.calculator-inputs button:hover {
background-color: #0056b3;
}
.calculator-result {
text-align: center;
margin-top: 20px;
padding: 15px;
background-color: #e9ecef;
border-radius: 4px;
}
.calculator-result h3 {
margin-bottom: 10px;
color: #333;
}
#capRateResult strong {
color: #28a745;
font-size: 1.3rem;
}