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How To Calculate / Find Cap Rate Calculator – Finance Calculator

[insert_php]

$n=””;

$v=””;

$res=0;

$symbol=’$’;

if(isset($_POST[‘btn_submit’]))

{

$n = $_POST[‘noi’];

$v = $_POST[‘v’];

$symbol=$_POST[‘cur’];

$res=cr($n,$v);

}

function cr($a, $p){

return round(($a*100)/$p,4);

}

[/insert_php]

Cap Rate Calculator

Net Operating Income (NOI):

Value of cost (V)


Result is:
[insert_php] echo $res;[/insert_php]

 

Formula to calculate Capitalization Rate

CR = (NOI / V)

Where,

CR = Capitalization Rate

V = Value or Cost

NOI = Net Operating Income

Example of Capitalization Rate for Real Estate

If the net operating income is 7000 $ and Market value is 6000 $, then the return rate (capitalization rate) is 
CR = Capitalization Rate = 7000 / 6000
CR = Capitalization Rate = 1.16 %

Prof. Fzal Rehman Shamil
Instructor, Researcher, Blogger, SEO Expert, Poet and Publisher of International Journal Of Software, Technology & Science ISSN : 2616 - 5325