Capitalization Rate Calculator
The capitalization rate (cap rate) is a key metric used in 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 suggests a higher potential return, but it's important to consider this alongside other factors like risk and market conditions.
Your Capitalization Rate:
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.calculator-container {
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padding: 20px;
border-radius: 8px;
max-width: 500px;
margin: 20px auto;
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.calculator-container h2 {
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.input-group input {
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button {
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border-radius: 4px;
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font-size: 1.1rem;
width: 100%;
transition: background-color 0.3s ease;
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button:hover {
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.calculator-result {
text-align: center;
margin-top: 20px;
padding: 15px;
background-color: #e9e9e9;
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.calculator-result h3 {
margin-top: 0;
color: #333;
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#capRateResult {
font-size: 1.8rem;
font-weight: bold;
color: #d9534f;
}
function calculateCapRate() {
var noiInput = document.getElementById("netOperatingIncome");
var valueInput = document.getElementById("propertyValue");
var resultDisplay = document.getElementById("capRateResult");
var noi = parseFloat(noiInput.value);
var propertyValue = parseFloat(valueInput.value);
if (isNaN(noi) || isNaN(propertyValue) || propertyValue === 0) {
resultDisplay.textContent = "Invalid input. Please enter valid numbers.";
return;
}
var capRate = (noi / propertyValue) * 100;
resultDisplay.textContent = capRate.toFixed(2) + "%";
}