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. A higher cap rate generally indicates a more attractive investment, assuming similar risk profiles.
function calculateCapRate() {
var noiInput = document.getElementById("netOperatingIncome");
var propertyValueInput = document.getElementById("propertyValue");
var resultDiv = document.getElementById("result");
var noi = parseFloat(noiInput.value);
var propertyValue = parseFloat(propertyValueInput.value);
if (isNaN(noi) || isNaN(propertyValue) || propertyValue <= 0) {
resultDiv.innerHTML = "Please enter valid numbers for Net Operating Income and Property Value (Property Value must be greater than 0).";
return;
}
var capRate = (noi / propertyValue) * 100;
resultDiv.innerHTML = "The calculated Capitalization Rate (Cap Rate) is: " + capRate.toFixed(2) + "%";
}
#cap-rate-calculator {
font-family: sans-serif;
border: 1px solid #ccc;
padding: 20px;
border-radius: 8px;
max-width: 400px;
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[type="number"] {
width: calc(100% – 22px);
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
box-sizing: border-box;
}
#cap-rate-calculator button {
background-color: #4CAF50;
color: white;
padding: 10px 15px;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 16px;
}
#cap-rate-calculator button:hover {
background-color: #45a049;
}
#result {
margin-top: 20px;
padding: 10px;
border-top: 1px solid #eee;
}