Calculate property capitalisation rate (cap rate): Net Operating Income / Property Value × 100. Investors use cap rates to compare commercial properties; higher cap rates indicate more income relative to value but potentially higher risk. Typical commercial cap rates: 5–9%.
Enter the values for the scenario you are assessing. Calculate property capitalisation rate (cap rate): Net Operating Income / Property Value × 100. Investors use cap rates to compare commercial properties; higher cap rates indicate more income relative to value but potentially higher risk. Typical commercial cap rates: 5–9%. Use the cap rate calculator result to inform your calculation.