Cap Rate Calculator

Calculate the capitalization rate for any commercial property. Understand returns, compare to market, and see implied property values.

Property Details

$
Revenue minus operating expenses (excluding debt)
$

Cap Rate Result

Capitalization Rate
8.0%
Value-Add
Annual NOI $120,000
Purchase Price $1,500,000
Cap Rate Formula NOI ÷ Price × 100

Implied Property Value at Target Cap Rates

At your current NOI of $120,000, this property is worth:

Conservative
@ 5% cap rate
$2,400,000
Moderate
@ 7% cap rate
$1,714,286
Market Average
@ 8% cap rate
$1,500,000
High Return
@ 10% cap rate
$1,200,000

Typical Cap Rates by Property Type (2025–2026)

Property Type Typical Range Category
Class A Multifamily4.5% – 5.5%Core
Class B/C Multifamily5.5% – 7.5%Value-Add
Office (Primary Markets)6.0% – 7.5%Value-Add
Industrial / Warehouse5.0% – 6.5%Core
Retail (Anchored)6.0% – 8.0%Value-Add
Retail (Strip / Unanchored)7.5% – 10%+Higher Risk
NNN Single Tenant5.0% – 6.5%Core
Self Storage5.5% – 7.5%Value-Add

Cap rates vary by submarket, property condition, lease term, and market cycle. These are general benchmarks.

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