Cap Rate Compression & Real Estate Return Calculator

Model the impact of capitalization rate compression on real estate returns. Calculate how much of total return comes from cap rate compression vs. NOI growth. Analyze entry/exit cap rate scenarios and their impact on IRR and equity multiple.

Principal ($)
Annual Rate (%)
Years
Compounding / Year
$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.
Advertisement

How It Works

Model the impact of capitalization rate compression on real estate returns. Calculate how much of total return comes from cap rate compression vs. NOI growth. Analyze entry/exit cap rate scenarios and their impact on IRR and equity multiple

Each component has a specific meaning:

  • Cap rate compression vs — The cap rate compression vs recorded for the scenario being assessed.

Note: Interpret the cap rate compression result against the thresholds and context described above.

How to Use

Enter the cap rate compression vs for the scenario you are assessing. Model the impact of capitalization rate compression on real estate returns. Calculate how much of total return comes from cap rate compression vs. NOI growth. Analyze entry/exit cap rate scenarios and their impact on IRR and equity multiple. Use the cap rate compression result to inform your calculation.

Frequently Asked Questions