01 / NOI
Start with property-level operations.
Net operating income is the property's effective gross income less operating expenses. It is calculated before financing costs, income taxes and depreciation. The quality of the result depends on whether income and expenses are complete, recurring and normalized for the property being analyzed.
02 / Cap Rate
Relate income to price.
The going-in cap rate divides annual NOI by the acquisition price. It is one lens on unlevered income yield at a point in time. A cap rate does not independently measure risk, future rent growth, capital requirements, financing or total return.
03 / Implied Value
Test a selected yield requirement.
Dividing NOI by a selected target cap rate produces an implied value. The target is an assumption—not a market fact. Support it with comparable transactions, lease review, physical due diligence, market evidence and professional advice.
04 / Limits
A screening tool, not a valuation.
This calculator is educational and does not provide an appraisal, valuation, investment recommendation, accounting opinion or legal advice. Capital expenditures, tenant improvements, leasing commissions, reserves, debt service and tax treatment may materially change an investment analysis even when they are not included in reported NOI.