Free tool · Real estate

Cap rate and NOI calculator.

Work out a property's net operating income, cap rate, value at your target cap rate, and debt service coverage.

Annual figures. Type 4.5m or 420k if you like.
Taxes, insurance, repairs, management. Not loan payments.
For the coverage ratio.
Net operating income
$276,000
Cap rate
6.13%
Value at 6.5%
$4,246,154
DSCR
1.31x
Gross potential income$432,000
Less vacancy-$21,000
Effective gross income$411,000
Operating expenses-$135,000
Expense ratio32.8%

Most lenders look for 1.25x or more: this clears it.

Free, no sign-up. It runs in your browser: nothing you type is stored or sent.

Questions

Anything else? Talk to the founder directly.

What is a cap rate?

Net operating income divided by the property's value or price. A higher cap rate means more income for the price, and usually more risk.

What is net operating income (NOI)?

Rent and other income, minus vacancy and operating expenses. It leaves out loan payments, depreciation and income tax.

What is a good DSCR?

Most commercial lenders want a debt service coverage ratio of at least 1.25x: income 25% above the loan payments.

How do buyers check the numbers?

Through the rent roll, leases and operating statements in a data room. TalkOctopus tracks which buyers and lenders review them.

Share your offering memorandum securely.

Open a property data room and see which buyers and lenders read the rent roll and financials.