.calculator-container-wrapper {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
max-width: 800px;
margin: 0 auto;
padding: 20px;
background: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
}
.calc-box {
background: #ffffff;
padding: 25px;
border-radius: 8px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
margin-bottom: 30px;
}
.calc-header {
text-align: center;
color: #2c3e50;
margin-bottom: 25px;
}
.input-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.input-grid {
grid-template-columns: 1fr;
}
}
.form-group {
margin-bottom: 15px;
}
.form-group label {
display: block;
font-weight: 600;
margin-bottom: 5px;
color: #34495e;
font-size: 0.9em;
}
.form-group input {
width: 100%;
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.form-group input:focus {
border-color: #3498db;
outline: none;
}
.calc-btn {
width: 100%;
background-color: #27ae60;
color: white;
border: none;
padding: 15px;
font-size: 18px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
transition: background-color 0.3s;
margin-top: 10px;
}
.calc-btn:hover {
background-color: #219150;
}
.results-box {
margin-top: 25px;
padding: 20px;
background-color: #f1f8e9;
border: 1px solid #c5e1a5;
border-radius: 4px;
display: none;
}
.result-row {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
padding-bottom: 10px;
border-bottom: 1px solid #dcedc8;
}
.result-row:last-child {
border-bottom: none;
margin-bottom: 0;
padding-bottom: 0;
}
.result-label {
font-weight: 600;
color: #558b2f;
}
.result-value {
font-weight: bold;
color: #33691e;
}
.big-metric {
font-size: 1.4em;
color: #2e7d32;
}
.seo-content {
line-height: 1.6;
color: #444;
}
.seo-content h2 {
color: #2c3e50;
margin-top: 30px;
font-size: 1.5em;
}
.seo-content h3 {
color: #34495e;
font-size: 1.2em;
margin-top: 20px;
}
.seo-content p {
margin-bottom: 15px;
}
.seo-content ul {
margin-bottom: 15px;
padding-left: 20px;
}
.seo-content li {
margin-bottom: 8px;
}
function calculateCapRate() {
// 1. Get Input Values
var price = parseFloat(document.getElementById('propertyPrice').value);
var rent = parseFloat(document.getElementById('monthlyRent').value);
var tax = parseFloat(document.getElementById('annualTax').value);
var insurance = parseFloat(document.getElementById('annualInsurance').value);
var maintenance = parseFloat(document.getElementById('annualMaintenance').value);
var vacancyPercent = parseFloat(document.getElementById('vacancyRate').value);
// 2. Validate Inputs
// Check if critical inputs are NaN or negative
if (isNaN(price) || price <= 0) {
alert("Please enter a valid Property Price.");
return;
}
if (isNaN(rent) || rent < 0) {
alert("Please enter valid Monthly Rent.");
return;
}
// Handle optional fields as 0 if empty
if (isNaN(tax)) tax = 0;
if (isNaN(insurance)) insurance = 0;
if (isNaN(maintenance)) maintenance = 0;
if (isNaN(vacancyPercent)) vacancyPercent = 0;
// 3. Perform Calculations
// Gross Annual Income
var grossAnnualIncome = rent * 12;
// Vacancy Loss
var vacancyLoss = grossAnnualIncome * (vacancyPercent / 100);
// Effective Gross Income
var effectiveGrossIncome = grossAnnualIncome – vacancyLoss;
// Total Operating Expenses
var totalExpenses = tax + insurance + maintenance;
// Net Operating Income (NOI)
var noi = effectiveGrossIncome – totalExpenses;
// Cap Rate Calculation: (NOI / Current Market Value) * 100
var capRate = (noi / price) * 100;
// 4. Update Output Elements
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 0,
maximumFractionDigits: 0,
});
document.getElementById('resGrossIncome').innerText = formatter.format(grossAnnualIncome);
document.getElementById('resVacancy').innerText = formatter.format(vacancyLoss);
document.getElementById('resExpenses').innerText = formatter.format(totalExpenses);
document.getElementById('resNOI').innerText = formatter.format(noi);
// Format Cap Rate with 2 decimal places
document.getElementById('resCapRate').innerText = capRate.toFixed(2) + "%";
// 5. Show Results
document.getElementById('resultsArea').style.display = 'block';
}
Understanding the Cap Rate Calculator
For real estate investors, the Capitalization Rate (or Cap Rate) is one of the most fundamental metrics used to evaluate the profitability of an investment property. Unlike a simple mortgage calculator, a Cap Rate calculator focuses specifically on the property's ability to generate income relative to its purchase price, ignoring financing costs.
What is Cap Rate?
The Cap Rate measures the annual rate of return on the property assuming it was bought entirely with cash. It helps investors compare different properties on an apples-to-apples basis, regardless of how they are financed.
The formula used in this calculator is:
Cap Rate = Net Operating Income (NOI) / Property Asset Value
Key Inputs Explained
- Net Operating Income (NOI): This is your total revenue minus all necessary operating expenses. It does not include mortgage payments (debt service) or capital expenditures.
- Vacancy Rate: No property is occupied 100% of the time. A standard conservative estimate for vacancy is often 5% to 10% of gross rent, representing income lost during tenant turnover.
- Operating Expenses: These include property taxes, insurance, routine maintenance, property management fees, and utilities paid by the landlord.
Example Calculation
To understand how this Cap Rate calculator processes your data, consider the following realistic scenario for a single-family rental home:
- Purchase Price: $200,000
- Monthly Rent: $2,000 (equates to $24,000 Gross Annual Income)
- Vacancy (5%): $1,200 loss
- Annual Expenses: Taxes ($3,000) + Insurance ($1,000) + Maintenance ($1,500) = $5,500
Step 1: Calculate Effective Income
$24,000 (Gross) – $1,200 (Vacancy) = $22,800
Step 2: Calculate NOI
$22,800 (Effective Income) – $5,500 (Expenses) = $17,300 NOI
Step 3: Calculate Cap Rate
($17,300 / $200,000) * 100 = 8.65%
What is a Good Cap Rate?
A "good" cap rate varies by market and risk level. Generally, a higher cap rate implies higher returns but often comes with higher risk (e.g., properties in declining neighborhoods). Conversely, lower cap rates (4%–6%) are common in highly desirable, low-risk areas. Many individual investors aim for a Cap Rate between 5% and 10% to ensure the property generates sufficient cash flow to cover potential financing costs.