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How to use
- Enter Annual NOI.
- Enter Cap rate %.
- Calculate, then verify input definitions before comparing properties or periods.
How it is calculated
Estimated value = NOI ÷ (cap rate ÷ 100)
Example
NOI of 60,000 at a 6% cap rate implies an estimated value of 1,000,000 and an NOI multiple of about 16.67×.
Important notes
This income approach is highly sensitive to the assumed cap rate. A one-point change can materially alter the value.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Value | 60000 ÷ 0.06 | 1,000,000 |
| NOI multiple | 1 ÷ 0.06 | 16.666667 |
Frequently asked questions
Is the output a confirmed market price?
No. It is an income-based estimate, not a substitute for comparable sales or professional appraisal.
Should inputs cover the same period?
Yes. When comparing income, expense, balance or price figures, keep the period and definitions consistent.
Is the result a final property valuation?
No. The calculator gives a numerical relationship only; real decisions also depend on location, market conditions, taxes, financing and risk.