The Cap Calculator
Put in what the property collects and what it costs to run. You'll get your net operating income, what it's worth at any cap rate, and the cap rate on a price you've been quoted. Apartments, rental houses and self-storage each work differently, so each one has its own calculator.
Unit type
Operating expenses
Yearly dollars. Leave anything you don't pay at zero.
Operating expenses never include your mortgage, depreciation, or big capital projects like a roof. Leaving those out is what makes it a cap rate.
The cap rate
Not sure? Leave it where it is. Cap rates move by market, building condition and tenant quality — a local pro will tell you what's actually trading near you.
Put in an offer or asking price and we'll show you the cap rate it works out to.
Why each one is different
The arithmetic is the same. What goes into it isn't.
Apartments
Priced almost purely on income, so the cap rate does nearly all the work. Watch the vacancy number: buyers use a market vacancy rate, not the one you happen to have this month.
Rental houses
Expenses run higher per dollar of rent, because it's one roof and one furnace per tenant instead of one per building. Houses also get valued on what an owner-occupant would pay, so treat the income number as your floor rather than your ceiling.
Self-storage
Judged on occupancy rather than vacancy, and other income matters more than anywhere else — late fees, tenant protection, locks and boxes. Expenses run lower, with no plumbing in the units and almost nothing to make ready between tenants.
This calculator is a rule-of-thumb tool, not an appraisal. The starting percentages are common ranges, not local market data, and every building prices differently. Get a real estimate before you make a decision on it.