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Capital Market Funds(480) 495-8072

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Cap rate and NOI calculator

Rent and expenses become NOI. NOI and a price become a cap rate. Either input can run in reverse.

Reviewed by Craig Hoebing, AZ Commercial Mortgage Banker CMB-1047342 · Updated October 2026

Build NOI

Rent if the property were full. Not a market rent.

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Percent of gross potential rent. Other income is not reduced by this percent.

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NOI

Enter gross rent or other income. Blank expense lines count as zero.

Cap rate

Follows the NOI above until you edit it. You can also type NOI and skip the lines.

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Leave blank to solve for price from NOI and a cap rate.

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Leave blank to solve for the cap rate from NOI and price. A number you type is your test, not a Phoenix or national survey.

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Result

Enter NOI and a price, or NOI and a cap rate, or a price and a cap rate.

Cap rate is net operating income divided by price. The reverse divides NOI by a cap rate you type, or multiplies price by that cap rate. None of these is a market cap rate.

What this NOI includes

Effective gross income is gross potential rent, minus the vacancy allowance, plus other income. NOI subtracts the operating expenses you type. It does not subtract debt service, capital reserves, leasing commissions, or income taxes. If you already know NOI, skip the lines and type it.

A cap rate is a price shorthand. It is not a loan amount. Coverage of a payment, and debt yield on a balance, are the DSCR calculator. Turning NOI, a value, and a rate you type into a loan size is the commercial loan rates and calculator, with a longer explanation on how much you can borrow.

The glossary defines cap rate and NOI. How those tests sit in an Arizona commercial mortgage is Arizona commercial mortgage. Multifamily of five or more units is multifamily. This page does not publish a Phoenix cap rate or any other survey.

Questions

What is a cap rate on this page?
Net operating income divided by the price you type, shown as a percentage. The reverse solves for price or for NOI. It is not a market cap rate for Phoenix, Arizona, or any other place.
Does the NOI calculator replace a lender's underwriting?
No. Vacancy is the percent you type, taken only against gross potential rent. Operating expenses are the dollars you type. A lender can substitute its own vacancy, management, taxes, and insurance. Debt service is not an operating expense.
Will Capital Market Funds tell me a good cap rate?
No. This page does not publish a cap-rate survey or a target. You type the income, the price, or the cap rate you want to test. Capital Market Funds arranges financing and is not a lender.

Commercial loan rates and calculator · DSCR calculator · How much can I borrow · Glossary · Arizona commercial mortgage · Multifamily · All tools