The Capitalization Rate, or 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 potentially better return, assuming equal risk.
Results:
function calculateCapRate() {
var noi = parseFloat(document.getElementById("netOperatingIncome").value);
var propertyValue = parseFloat(document.getElementById("propertyValue").value);
var resultDiv = document.getElementById("result");
if (isNaN(noi) || isNaN(propertyValue)) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (propertyValue <= 0) {
resultDiv.innerHTML = "Property Value must be greater than zero.";
return;
}
var capRate = (noi / propertyValue) * 100;
resultDiv.innerHTML = "Net Operating Income (NOI): $" + noi.toLocaleString() + "" +
"Property Value: $" + propertyValue.toLocaleString() + "" +
"Calculated Cap Rate: " + capRate.toFixed(2) + "%";
}
.cap-rate-calculator {
font-family: sans-serif;
border: 1px solid #ccc;
padding: 20px;
border-radius: 8px;
max-width: 500px;
margin: 20px auto;
box-shadow: 2px 2px 10px rgba(0,0,0,0.1);
}
.cap-rate-calculator h2 {
text-align: center;
margin-bottom: 20px;
color: #333;
}
.cap-rate-calculator p {
margin-bottom: 15px;
line-height: 1.6;
color: #555;
}
.input-section {
margin-bottom: 15px;
}
.input-section label {
display: block;
margin-bottom: 8px;
font-weight: bold;
color: #444;
}
.input-section input[type="number"] {
width: calc(100% – 22px);
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
}
.cap-rate-calculator button {
display: block;
width: 100%;
padding: 12px 15px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
cursor: pointer;
transition: background-color 0.3s ease;
}
.cap-rate-calculator button:hover {
background-color: #0056b3;
}
.result-section {
margin-top: 25px;
border-top: 1px dashed #eee;
padding-top: 20px;
}
.result-section h3 {
margin-bottom: 15px;
color: #333;
}
.result-section p {
margin-bottom: 10px;
color: #333;
font-size: 16px;
}
.result-section strong {
color: #28a745; /* Green for emphasis on the result */
}