Annual Net Operating Income:
$0
Estimated Property Value:
$0
How to Use This Tool
This calculator helps you estimate the market value of a rental property based on its income potential.
- Step 1: Enter the Total Monthly Rent you expect to collect from all units.
- Step 2: Enter your Monthly Expenses (Property taxes, insurance, maintenance). Do not include your mortgage payment.
- Step 3: Enter the Desired Cap Rate. This represents the expected yield for the area.
Key Terms
- NOI (Net Operating Income): The annual income generated after expenses, used to value the asset before financing costs.
- Cap Rate: The ratio of Net Operating Income to property asset value. It helps compare different real estate investments side-by-side.