Cap Rate & Annual NOI Calculator
Feed rent, losses, extra income and costs into this cap rate calculator to get NOI and cap rate for a price or value you choose; it's no loan approval.
What This Calculator Does
Six inputs produce a single year of operating numbers. The calculator takes scheduled gross rent, subtracts the vacancy or credit-loss allowance you set, and adds other income you've already trimmed for its own uncollected amounts. Operating expenses come off that total, leaving NOI, and NOI is divided by the price or value you gave. A result below zero, or exactly zero, is fine. It doesn't value the property, grade it against the market or stand in for full underwriting.
Who Is This For
Buyers, owners and real estate professionals can use it to size up a property's yearly income before any loan enters the picture. Runs only compare fairly when income, expenses and price or value are treated the same way each time. Property documents and the lender's review remain separate steps.
How It Works
Choose whether your figure is a purchase price or a property value, then fill in five amounts that all describe the same 12 months. Rent goes in whole, before any vacancy allowance, while other income is only what you actually collected. If a line is truly zero, enter 0. Press Calculate and the page returns six results plus five exact figures, unrounded; even a tiny amount keeps its + or − sign.
Frequently Asked Questions
What does this page mean by NOI and cap rate?
Income left after vacancy, less operating expenses, is annual NOI. Cap rate comes from NOI ÷ whichever price or value you typed in, × 100. You get six outputs back. Vacancy loss, net rent and total income describe the income side; NOI, cap rate and surplus or loss finish the job. The five exact figures beside them use the same math without rounding. They aren't extra metrics, and they don't prove that cash was actually received.
Where do vacancy and other income fit into the math?
Say your scheduled gross rent is US$60,000 for the year and your vacancy allowance is 10%. That leaves US$54,000. Add US$3,000 of other income to reach US$57,000, take off US$18,000 of expenses, and NOI lands at US$39,000. The vacancy cut hits rent only: other income should come in with its own collection losses already taken out, and it joins before operating costs. Never type in collected rent as the gross figure; you would subtract vacancy from a number that already reflects it.
Can zero inputs or a negative NOI be used?
Yes, as long as the zero is a fact. A blank, or a number you haven't found yet, isn't zero. Take a property priced at US$500,000 with no operating income and US$10,000 of expenses: NOI comes out at −US$10,000, a cap rate of −2%. That marks an operating loss; it does not trigger a loan rejection by itself. Break-even needs NOI to be exactly zero, not just display as zero. A positive NOI still leaves out the costs excluded.
Why isn't cap rate based on my down payment or the cost of the whole project?
Because cap rate asks what the income yields on the property itself, not on the cash you put in. Take NOI of $36,000 ÷ a price of $500,000 and you get 7.2%. Measure that same $36,000 against a $600,000 value and it drops to 6%. The calculator doesn't judge whether either figure is right. Dividing by total project cost gives yield on cost; dividing cash flow after the mortgage by your own cash gives the return on that cash. Neither is computed here.
What goes into operating expenses, and what stays out?
Operating expenses are the costs that recur every year just to run the property, and the definition stays fixed on every run. Management, property tax and property insurance go in. So do owner-paid services and routine repairs. Costs behind other income are entered without duplication. Capital expenditures, depreciation and acquisition costs stay out. Money spent on the loan never counts: principal, interest, financing fees, financing insurance. Your own income tax stays outside too, and property tax is a different thing. Reserve policies differ, so the calculator can't certify the NOI a given lender would underwrite.
How are tiny amounts and rates displayed?
A vacancy percentage applied to rent can leave you with fractions of a cent. When a yearly amount is not zero but sits below US$0.01, you see a small signed value, never 0. The same goes for a cap rate that isn't zero but falls under 0.0001%. Everything else: cash goes to the nearest cent, rates to four decimals, exact halves away from zero. Raw method numbers may show in scientific notation. Surplus, loss or zero is decided by the exact NOI sign, not by display rounding.
Is a high cap rate, or a figure inside the form's limits, a sign of a good deal?
No. The $2 billion field cap and the 0–100% vacancy range exist because a form needs limits; they say nothing about markets or lenders. Rent and other income are entered apart, so total income and NOI can reach $4 billion. A cap rate may top 100%, go negative, and is never capped at 100%. There's no automatic Excellent/Good grade, no regional benchmark and no 6% threshold. Fill in every amount, all for the same time span.
What does the CoreVest Finance reference prove, and where does it stop?
Wording, nothing more. The CoreVest Finance glossary was read on October 3, 2026, for its definitions of GOI, NOI, cap rate and operating expense. The math baseline saved on September 30 is not that reading, and it isn't drawn from an archive of current market data. Nothing in the reference checks your property's numbers, sets a regional benchmark, imports a generic average vacancy or amounts to loan approval. Verify the real documents, how costs are defined and what the lender requires, each on its own.