.calculator-container {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
padding: 20px;
background: #fff;
border-radius: 8px;
box-shadow: 0 2px 10px rgba(0,0,0,0.1);
}
.calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.calc-grid {
grid-template-columns: 1fr;
}
}
.input-group {
margin-bottom: 15px;
}
.input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #333;
}
.input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.input-group .currency-symbol {
position: relative;
}
.input-group .currency-symbol:before {
content: "$";
position: absolute;
left: 10px;
top: 50%;
transform: translateY(-50%);
color: #666;
}
.input-group .currency-symbol input {
padding-left: 25px;
}
.input-group .percent-symbol {
position: relative;
}
.input-group .percent-symbol:after {
content: "%";
position: absolute;
right: 10px;
top: 50%;
transform: translateY(-50%);
color: #666;
}
button.calc-btn {
background-color: #0056b3;
color: white;
border: none;
padding: 12px 24px;
font-size: 18px;
border-radius: 4px;
cursor: pointer;
width: 100%;
margin-top: 10px;
transition: background-color 0.3s;
}
button.calc-btn:hover {
background-color: #004494;
}
#result {
margin-top: 25px;
padding: 20px;
background-color: #f8f9fa;
border-left: 5px solid #0056b3;
border-radius: 4px;
display: none;
}
.result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
font-size: 16px;
}
.result-row.main-result {
font-size: 24px;
font-weight: 700;
color: #0056b3;
border-top: 1px solid #ddd;
padding-top: 10px;
margin-top: 10px;
}
.content-section {
margin-top: 40px;
line-height: 1.6;
color: #333;
}
.content-section h2 {
color: #2c3e50;
margin-top: 30px;
}
.content-section h3 {
color: #34495e;
margin-top: 20px;
}
.content-section ul {
padding-left: 20px;
}
.error-msg {
color: #dc3545;
font-weight: bold;
display: none;
margin-top: 10px;
}
function calculateCapRate() {
// Get inputs
var propValue = parseFloat(document.getElementById('propertyValue').value);
var mRent = parseFloat(document.getElementById('monthlyRent').value);
var aExpenses = parseFloat(document.getElementById('annualExpenses').value);
var vRate = parseFloat(document.getElementById('vacancyRate').value);
// Error handling
var errorDiv = document.getElementById('error');
var resultDiv = document.getElementById('result');
if (isNaN(propValue) || isNaN(mRent) || propValue <= 0 || mRent 0) {
capRate = (noi / propValue) * 100;
}
// Update DOM
document.getElementById('resGrossIncome').innerText = "$" + grossAnnualIncome.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resVacancy').innerText = "$" + vacancyLoss.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resEffectiveIncome').innerText = "$" + effectiveGrossIncome.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resExpenses').innerText = "$" + aExpenses.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resNOI').innerText = "$" + noi.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
var capRateElement = document.getElementById('resCapRate');
capRateElement.innerText = capRate.toFixed(2) + "%";
// Color coding for Cap Rate
if (capRate = 3 && capRate < 8) {
capRateElement.style.color = "#e67e22"; // Orange
} else {
capRateElement.style.color = "#27ae60"; // Green
}
}
What is a Cap Rate?
The Capitalization Rate, or "Cap Rate," is a fundamental metric used in the real estate industry to evaluate the profitability and return potential of an investment property. It represents the ratio between the Net Operating Income (NOI) produced by the asset and its original capital cost (or current market value). essentially indicating the rate of return you can expect on a real estate investment property, assuming you bought it essentially with cash.
How to Calculate Cap Rate
The formula for calculating Cap Rate is relatively simple, but it requires accurate data regarding the property's income and expenses. The formula is:
Cap Rate = (Net Operating Income / Property Asset Value) × 100
To use this formula correctly, you must first calculate the Net Operating Income (NOI):
- Gross Scheduled Income: Total annual rent if 100% occupied.
- Subtract Vacancy: Account for periods where units are empty (typically 5-10%).
- Subtract Operating Expenses: Property taxes, insurance, management fees, maintenance, and utilities. (Note: Mortgage payments are not included in NOI).
Example Calculation
Imagine you are looking at a duplex listed for $500,000.
- The property generates $4,000 per month in rent ($48,000/year).
- You estimate a 5% vacancy rate ($2,400/year).
- Annual taxes, insurance, and maintenance cost $12,000.
NOI Calculation: $48,000 – $2,400 – $12,000 = $33,600.
Cap Rate Calculation: ($33,600 / $500,000) = 0.0672 or 6.72%.
What is a "Good" Cap Rate?
There is no single "good" Cap Rate, as it varies heavily by location and asset class. However, general guidelines suggest:
- 4% – 5%: Common in high-demand, low-risk areas (e.g., downtown NYC or San Francisco). Lower return, but higher potential for appreciation.
- 6% – 8%: Often considered a healthy balance between risk and return for residential multifamily properties in stable markets.
- 8% – 12%+: Common in riskier markets or older properties requiring more maintenance. Higher cash flow potential but higher risk.
Use this calculator to quickly compare different investment opportunities. Remember, a higher Cap Rate implies a better annual return on your cash investment, but often comes with higher risks or lower property appreciation potential.