.cap-calc-container {
background-color: #ffffff;
border: 1px solid #e2e8f0;
border-radius: 8px;
padding: 30px;
box-shadow: 0 4px 6px rgba(0, 0, 0, 0.05);
margin-bottom: 40px;
}
.cap-calc-header {
text-align: center;
margin-bottom: 25px;
}
.cap-calc-header h2 {
margin: 0;
color: #2d3748;
font-size: 24px;
}
.cap-calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.cap-calc-grid {
grid-template-columns: 1fr;
}
}
.cap-input-group {
margin-bottom: 15px;
}
.cap-input-group label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #4a5568;
font-size: 14px;
}
.cap-input-group input {
width: 100%;
padding: 12px;
border: 1px solid #cbd5e0;
border-radius: 6px;
font-size: 16px;
transition: border-color 0.2s;
box-sizing: border-box;
}
.cap-input-group input:focus {
outline: none;
border-color: #4299e1;
box-shadow: 0 0 0 3px rgba(66, 153, 225, 0.2);
}
.cap-btn {
background-color: #2b6cb0;
color: white;
border: none;
padding: 15px 30px;
font-size: 18px;
font-weight: bold;
border-radius: 6px;
cursor: pointer;
width: 100%;
margin-top: 20px;
transition: background-color 0.2s;
}
.cap-btn:hover {
background-color: #2c5282;
}
.cap-results {
margin-top: 30px;
background-color: #ebf8ff;
border-radius: 6px;
padding: 25px;
display: none;
border: 1px solid #bee3f8;
}
.cap-result-row {
display: flex;
justify-content: space-between;
align-items: center;
margin-bottom: 12px;
padding-bottom: 12px;
border-bottom: 1px solid #bee3f8;
}
.cap-result-row:last-child {
border-bottom: none;
margin-bottom: 0;
padding-bottom: 0;
}
.cap-result-label {
color: #2d3748;
font-weight: 500;
}
.cap-result-value {
font-weight: 700;
color: #2b6cb0;
font-size: 18px;
}
.cap-highlight {
font-size: 28px;
color: #2f855a;
}
.cap-content {
line-height: 1.6;
color: #4a5568;
}
.cap-content h2, .cap-content h3 {
color: #2d3748;
margin-top: 30px;
}
.cap-content p {
margin-bottom: 15px;
}
.cap-content ul {
margin-bottom: 20px;
padding-left: 20px;
}
.cap-content li {
margin-bottom: 8px;
}
function calculateCapRate() {
// Get Input Values
var price = parseFloat(document.getElementById('capPropValue').value);
var monthlyRent = parseFloat(document.getElementById('capRent').value);
var tax = parseFloat(document.getElementById('capTax').value);
var insurance = parseFloat(document.getElementById('capInsurance').value);
var maintenance = parseFloat(document.getElementById('capMaintenance').value);
var otherExp = parseFloat(document.getElementById('capOtherExp').value);
var vacancyRate = parseFloat(document.getElementById('capVacancy').value);
var mgmtRate = parseFloat(document.getElementById('capMgmt').value);
// Validation
if (isNaN(price) || price <= 0) {
alert("Please enter a valid property price.");
return;
}
if (isNaN(monthlyRent) || monthlyRent < 0) {
alert("Please enter a valid monthly rental income.");
return;
}
// Set defaults for optional fields if empty
if (isNaN(tax)) tax = 0;
if (isNaN(insurance)) insurance = 0;
if (isNaN(maintenance)) maintenance = 0;
if (isNaN(otherExp)) otherExp = 0;
if (isNaN(vacancyRate)) vacancyRate = 0;
if (isNaN(mgmtRate)) mgmtRate = 0;
// Calculations
var grossAnnualIncome = monthlyRent * 12;
// Calculate Vacancy Loss
var vacancyLoss = grossAnnualIncome * (vacancyRate / 100);
// Effective Gross Income (Income after vacancy)
var effectiveGrossIncome = grossAnnualIncome – vacancyLoss;
// Calculate Management Fee (Usually based on collected rent/effective gross)
var mgmtFee = effectiveGrossIncome * (mgmtRate / 100);
// Total Expenses
var totalExpenses = tax + insurance + maintenance + otherExp + mgmtFee;
// Net Operating Income (NOI)
var noi = effectiveGrossIncome – totalExpenses;
// Cap Rate Formula: (NOI / Property Value) * 100
var capRate = (noi / price) * 100;
// Formatter
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 0,
maximumFractionDigits: 0,
});
// Display Results
document.getElementById('resGrossIncome').innerHTML = formatter.format(grossAnnualIncome);
document.getElementById('resEffGross').innerHTML = formatter.format(effectiveGrossIncome);
document.getElementById('resTotalExp').innerHTML = formatter.format(totalExpenses);
document.getElementById('resNOI').innerHTML = formatter.format(noi);
// Handle display color for Cap Rate
var capRateDisplay = document.getElementById('resCapRate');
capRateDisplay.innerHTML = capRate.toFixed(2) + "%";
if(capRate < 0) {
capRateDisplay.style.color = "#e53e3e"; // Red for negative
} else {
capRateDisplay.style.color = "#2f855a"; // Green for positive
}
// Show Result Section
document.getElementById('capResults').style.display = "block";
}
Cap Rate Calculator
Analyze the profitability of your real estate investment
Gross Scheduled Income (Annual)
–
Effective Gross Income
–
Total Operating Expenses
–
Net Operating Income (NOI)
–
Capitalization Rate
–
What is a Cap Rate?
The Capitalization Rate (Cap Rate) is one of the most popular metrics used in commercial and residential real estate to evaluate the profitability of an investment property. It represents the rate of return on a real estate investment property based on the income that the property is expected to generate.
Unlike other metrics like Cash-on-Cash Return or ROI, the Cap Rate calculates the intrinsic value of the property independently of how it is financed (i.e., assuming an all-cash purchase).
The Cap Rate Formula
The math behind the calculation is relatively straightforward:
Cap Rate = (Net Operating Income / Current Market Value) x 100
Where:
- Net Operating Income (NOI): This is your annual rental income minus all operating expenses (taxes, insurance, management, repairs) but excluding mortgage payments.
- Current Market Value: The present value or purchase price of the property.
What is a "Good" Cap Rate?
There is no single answer to what constitutes a "good" cap rate, as it varies heavily by location, property type, and the current economic environment. However, general guidelines suggest:
- 4% to 5%: Common in high-demand, low-risk areas (e.g., NYC, San Francisco). These properties often appreciate in value over time but offer lower immediate cash flow.
- 6% to 8%: Often considered a healthy balance between risk and return for most residential rental properties in stable markets.
- 10% or higher: Typically found in riskier neighborhoods or rural areas. While the return looks high, these properties may require more management effort or carry higher vacancy risks.
Why Real Estate Investors Use This Calculator
Using a Cap Rate Calculator allows investors to quickly compare different properties on an apples-to-apples basis. Since mortgage terms vary from investor to investor, removing the debt service from the equation allows you to see the raw earning potential of the asset itself.
Remember: A high cap rate implies higher returns but often comes with higher risk, while a low cap rate implies lower returns but usually signifies a safer, more stable asset.