Calculate a basis-preserving arithmetic cap rate from one reviewed annual NOI and one documented price or value amount without market ratings or advice.
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Calculate one auditable arithmetic cap rate while preserving the reviewed annual NOI basis, documented price/value basis and shared currency label without supplying a market verdict.
Keep the reviewed T-12 NOI and transaction price visible without a hidden second NOI path.
Select trailing actual, enter the reviewed annual NOI, identify the acquisition/offer price basis and use one currency label.
Gets one traceable ratio with no GRM, market benchmark or strong/moderate label.
Avoid presenting pro forma NOI as interchangeable with trailing actual operations.
Create a separate Forward / pro forma record and retain the exact denominator basis and valuation date in the supporting file.
The visible basis prevents silent comparison until income, expense, timing and market evidence are reconciled.
Prevent a ratio from being treated as an appraisal or investment recommendation.
Use current comparable evidence and qualified appraisal, underwriting, accounting, legal and investment review for every consequential decision.
The result explicitly excludes market-rate selection, implied value, forecasting, financing, tax, risk rating and transaction advice.
Outputs and checklists are planning aids. Review the linked current authorities and the records, terms, instructions, and requirements that apply to your exact situation before a consequential decision.
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The ratio is meaningful only for the entered bases. The tool does not calculate NOI from partial rent and expense fields, infer market value or silently switch between price and appraisal value.
Arithmetic cap rate (%) = reviewed annual NOI ÷ entered price/value amount × 100Record the reviewed basis instead of treating different income periods and expense structures as interchangeable. Income, vacancy, expenses, reserves, property scope and valuation timing require consistent responsible review.
NOI basis = trailing actual / forward-pro forma / other reviewed annual basisBoth amounts use one three-letter currency label, which performs no conversion. Record the denominator's source and date outside the calculator; the result is not an appraisal or market-derived capitalization rate.
Entered basis = acquisition/offer price, reviewed appraisal value or other documented amountUpdated: August 2026
USD 35,000 reviewed trailing NOI divided by a USD 500,000 acquisition/offer price equals a 7.00% arithmetic cap rate. The result does not say whether either amount or the investment is appropriate.
Select Forward / pro forma only when that annual NOI has been independently reviewed. Do not compare it with a trailing-actual ratio until timing, income and expense structures are reconciled.
Zero NOI produces 0.00%; negative NOI produces a negative arithmetic ratio. Neither result establishes that direct capitalization is suitable or creates an implied property value.
Keep trailing, forward and other NOI bases separate and document the denominator's type, source and valuation date before comparison.
Use current comparable market evidence and qualified appraisal, underwriting, accounting, legal and investment review; this calculator supplies no good/bad threshold.
Record one reviewed annual NOI, its timing basis, one documented price or value amount, its basis, and a shared currency label. The calculator returns only the arithmetic ratio. It does not select a market cap rate, reconcile actual and pro forma income, establish value, rank an investment or replace appraisal and underwriting review.