Turn lease figures into a clean cap rate. Built for clauses, exhibits, and approval workflows. Save outputs to share with counsel and stakeholders today.
Use this as a template for schedules or exhibits.
| Scenario | Value | Gross Rent | Vacancy | Other Income | OpEx | Reserves | NOI | Cap Rate |
|---|---|---|---|---|---|---|---|---|
| Sample Exhibit | $250,000 | $30,000/yr | 5.0% | $1,200/yr | $10,500/yr | $1,000/yr | $18,200/yr | 7.28% |
Use this calculator to document how a cap rate was derived for a lease file, purchase agreement, or committee memo. Enter the property value from the governing exhibit, then choose either Detailed NOI or Direct NOI to match the document definition. Currency selection standardizes outputs for attachments. Keeping the same assumptions across drafts reduces redlines and supports consistent internal approvals. Add notes in your file on valuation source and effective date.
Income fields accept monthly or annual figures, then normalize to an annual basis to avoid mixed-period errors. Gross scheduled rent represents contract rent before losses. Vacancy and credit loss is applied as a percentage reduction to rent, producing effective gross income when other income is added. This mirrors common underwriting schedules and makes each adjustment explicit. For multi-tenant assets, aggregate unit rents before applying vacancy.
Operating expenses should reflect recurring, property-level costs such as taxes, insurance, maintenance, utilities, and management fees. Replacement reserves capture planned capital refresh budgets that may appear in condition reports or maintenance annexures. Because definitions differ, align each line item with the contract schedule used in negotiations. Excluding financing and depreciation keeps the NOI figure comparable across buyers. If expenses are reimbursable, include only the net landlord portion.
Cap rate is computed as NOI divided by value, expressed as a percent. The optional target cap rate adds two decision metrics: required NOI at the stated value and implied value at the calculated NOI. These outputs help reviewers test pricing sensitivity, evaluate renewal scenarios, and justify assumptions in an approval packet. Record the generated timestamp with the memo for auditability. Include the method used so readers understand whether vacancy was applied.
CSV export is suited for spreadsheets, checklists, and exhibit tables, while PDF export provides a fixed snapshot for signatures and document bundles. Run the calculation after finalizing numbers, then attach the export to the relevant clause set or transaction folder. Store the file alongside rent rolls and expense statements so later reviewers can reproduce the cap rate without rework.
Cap rate expresses net operating income as a percentage of property value. It helps summarize yield assumptions in exhibits, approval memos, and pricing discussions using a single comparable metric.
Use the value referenced by your governing clause or schedule. For acquisitions, that is often purchase price; for renewals or reporting, it may be appraised or committee-approved value.
No. NOI typically excludes financing costs, depreciation, and income taxes. If your agreement defines NOI differently, mirror that definition and document the deviation in your file notes.
Vacancy reduces gross scheduled rent before other income is added, lowering effective gross income and NOI. Because cap rate is NOI divided by value, higher vacancy generally lowers cap rate.
Choose Direct NOI when an appraisal, exhibit, or schedule already states NOI and you only need cap rate against a value. Use Detailed NOI when you must build NOI from rent and expenses.
CSV works well for internal spreadsheets and exhibit tables, while PDF provides a fixed snapshot for signing packets and audit trails. Attach exports alongside rent rolls and expense statements for traceability.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.