Commercial real estate

Value from Cap Rate Calculator

Value stabilized income and adjust for capital work, vacancy, closing costs and debt. Compare cap-rate scenarios.

What this calculator estimates

Estimate property value from stabilized NOI and market cap rate. It combines the inputs below to produce Indicated property value. Every assumption remains editable so the estimate can reflect the property, financing and location being evaluated.

Worked example

Using the displayed sample assumptions, the calculator produces $4,000,000. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.

Inputs and assumptions

• Stabilized annual NOI — sample input: 250000 currency units
• Target capitalization rate — sample input: 6.25 %
• Other value adjustment — optional — sample input: 0 currency units
• Deferred capital work — optional — sample input: 0 currency units
• Additional annual vacancy loss — optional — sample input: 0 currency units
• Acquisition costs — optional — sample input: 0 currency units
• Secured debt / mortgage payoff — optional — sample input: 0 currency units
• Cap-rate comparison interval — sample input: 0.5 %

How to interpret the result

Use lease definitions and verified operating statements. Compare a conservative case with an expected case and keep a record of the assumptions used.

Common mistake to avoid

Do not compare properties using inconsistent NOI definitions. Local definitions, taxes, lending practices and measurement requirements can materially change the result.

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Reviewed 2026-09-08.