.calc-container {
max-width: 800px;
margin: 0 auto;
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
border: 1px solid #e0e0e0;
border-radius: 8px;
overflow: hidden;
box-shadow: 0 4px 10px rgba(0,0,0,0.05);
background: #fff;
}
.calc-header {
background-color: #2c3e50;
color: #ffffff;
padding: 20px;
text-align: center;
}
.calc-header h2 {
margin: 0;
font-size: 24px;
}
.calc-body {
padding: 30px;
display: flex;
flex-wrap: wrap;
gap: 30px;
}
.calc-inputs {
flex: 1;
min-width: 300px;
}
.calc-results {
flex: 1;
min-width: 300px;
background-color: #f8f9fa;
border-radius: 6px;
padding: 20px;
display: flex;
flex-direction: column;
justify-content: center;
border: 1px solid #dee2e6;
}
.form-group {
margin-bottom: 20px;
}
.form-group label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #333;
}
.input-wrapper {
position: relative;
}
.input-wrapper span {
position: absolute;
left: 10px;
top: 50%;
transform: translateY(-50%);
color: #666;
}
.form-control {
width: 100%;
padding: 12px 12px 12px 25px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
transition: border-color 0.3s;
}
.form-control:focus {
border-color: #3498db;
outline: none;
}
.btn-calc {
width: 100%;
padding: 15px;
background-color: #27ae60;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.3s;
}
.btn-calc:hover {
background-color: #219150;
}
.result-row {
margin-bottom: 20px;
text-align: center;
border-bottom: 1px solid #e9ecef;
padding-bottom: 15px;
}
.result-row:last-child {
border-bottom: none;
margin-bottom: 0;
padding-bottom: 0;
}
.result-label {
font-size: 14px;
color: #666;
text-transform: uppercase;
letter-spacing: 1px;
margin-bottom: 5px;
}
.result-value {
font-size: 32px;
font-weight: 700;
color: #2c3e50;
}
.highlight {
color: #27ae60;
}
.calc-content {
padding: 30px;
border-top: 1px solid #e0e0e0;
line-height: 1.6;
color: #444;
}
.calc-content h3 {
color: #2c3e50;
margin-top: 0;
}
.calc-content h4 {
color: #2c3e50;
margin-top: 20px;
margin-bottom: 10px;
}
.calc-content ul {
padding-left: 20px;
}
.calc-content li {
margin-bottom: 8px;
}
@media (max-width: 600px) {
.calc-body {
flex-direction: column;
}
}
function calculateCapRate() {
// Get values from inputs
var priceInput = document.getElementById('propertyPrice').value;
var incomeInput = document.getElementById('grossIncome').value;
var expensesInput = document.getElementById('opExpenses').value;
// Clean inputs (handle potential empty strings)
var price = parseFloat(priceInput);
var income = parseFloat(incomeInput);
var expenses = parseFloat(expensesInput);
// Validation
if (isNaN(price) || price <= 0) {
alert("Please enter a valid Property Purchase Price greater than 0.");
return;
}
if (isNaN(income)) income = 0;
if (isNaN(expenses)) expenses = 0;
// Calculate Net Operating Income (NOI)
var noi = income – expenses;
// Calculate Cap Rate
// Formula: (NOI / Price) * 100
var capRate = (noi / price) * 100;
// Update the DOM with results
var noiElement = document.getElementById('resultNOI');
var capRateElement = document.getElementById('resultCapRate');
// Format as Currency USD
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
noiElement.innerHTML = formatter.format(noi);
// Format Cap Rate to 2 decimal places
capRateElement.innerHTML = capRate.toFixed(2) + "%";
// Visual feedback on negative NOI
if (noi < 0) {
noiElement.style.color = "#e74c3c";
} else {
noiElement.style.color = "#2c3e50";
}
}
Real Estate Cap Rate Calculator
$
$
$
Includes taxes, insurance, maintenance, vacancy, etc.
Net Operating Income (NOI)
$0.00
Capitalization Rate
0.00%
What is the Capitalization Rate (Cap Rate)?
The Capitalization Rate, or "Cap Rate," is a fundamental metric used in real estate investing to evaluate the profitability and return potential of an investment property. It represents the ratio between the property's Net Operating Income (NOI) and its current market value or acquisition cost.
Unlike other metrics that might factor in mortgage financing, the Cap Rate calculates the rate of return on the property as if it were purchased entirely with cash. This allows investors to compare properties directly, regardless of financing structures.
How the Formula Works
The math behind our calculator is straightforward:
Cap Rate = (Net Operating Income / Property Value) × 100
- Net Operating Income (NOI): This is your Annual Gross Rental Income minus your Annual Operating Expenses. Operating expenses include property taxes, insurance, management fees, maintenance, and vacancy allowances, but exclude mortgage payments and depreciation.
- Property Value: The current market value or the price you plan to pay for the asset.
Real-World Example
Imagine you are looking at a duplex listed for $500,000. It generates $60,000 in gross rent per year. After paying for taxes, repairs, and insurance, your total operating expenses come to $15,000.
- First, calculate NOI: $60,000 – $15,000 = $45,000.
- Next, divide by the price: $45,000 / $500,000 = 0.09.
- Multiply by 100 to get the percentage: 9.00% Cap Rate.
What is a "Good" Cap Rate?
There is no single answer, as a "good" rate depends on the location and asset class. generally:
- 4% – 6%: Common in high-demand, low-risk areas (e.g., downtown NYC or San Francisco). Lower return, but higher stability and appreciation potential.
- 7% – 10%: Often found in suburban areas or secondary markets. Offers a balance of cash flow and risk.
- 10%+: Typical in older properties or higher-risk neighborhoods. Offers high cash flow to offset potential volatility or lack of appreciation.