Free investor tools. Educational estimates only. FlowExit is not a brokerage, appraiser, or tax advisor. Consult licensed professionals before making financial decisions.

Thinking about selling your multi-unit or commercial property?

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Cap Rate Calculator

Estimate NOI, cap rate, price per unit, and expense ratio from basic operating inputs.

NOI
$78,000
Cap rate
6.50%
Price per unit
$150,000
Expense ratio
35.00%

How cap rate is calculated

Cap rate shows annual net operating income (NOI) as a percentage of purchase price. Buyers use it to compare deals on a yield basis.

NOI = Annual gross rent − Annual operating expenses

Cap rate = NOI ÷ Purchase price × 100

Operating expenses cover taxes, insurance, utilities, repairs, and management. They exclude debt service, depreciation, and major capex.

Your numbers

  • NOI = $120,000 − $42,000 = $78,000
  • Cap rate = $78,000 ÷ $1,200,000 × 100 = 6.50%
  • Expense ratio = $42,000 ÷ $120,000 × 100 = 35.00%
  • Price per unit = $1,200,000 ÷ 8 units = $150,000

Educational estimate only. Not an appraisal or broker price opinion.

Educational estimates only. FlowExit is not a brokerage, appraiser, or tax advisor. Consult licensed professionals before making financial decisions.

Cap Rate Calculator for Small Multifamily