Commercial Cap Rate Calculator

Calculate capitalization rate from a commercial property’s annual net operating income and purchase price or value.

How to use this Commercial Cap Rate Calculator

Calculate capitalization rate from a commercial property’s annual net operating income and purchase price or value. Enter your numbers above and Okomit calculates the result instantly.

Commercial Cap Rate Calculator formula

Cap Rate = Annual NOI ÷ Property Value × 100

Example

$180,000 of NOI on a $3,000,000 property produces a 6.0% cap rate.

How to use the result

Cap rate is a useful unlevered income metric, but it does not include financing, future capital costs, lease risk, or appreciation.

Frequently asked questions

Is this calculator free?

Yes. This Okomit calculator is available as a free tool.

Does Okomit save the numbers I enter?

Guest calculations remain in the browser unless you choose a feature that explicitly saves work. Logged-in Okomit features may support saved scenarios where available.

Can I use this for business planning?

Yes, as a planning aid. Review important business, tax, legal, lending, or accounting decisions with the appropriate professional when needed.

Keep exploring

Related business tools

View Real Estate tools →
BRRRR CalculatorAnalyze a buy, rehab, rent, refinance, repeat deal with cash flow, DSCR, cash-on-cash return, and a buy/pass test.Buyer Agent Commission CalculatorEstimate buyer-side gross commission, broker split, referral fees, and transaction fees for a residential closing.Commercial Break-Even Occupancy CalculatorEstimate the occupancy rate needed for property income to cover operating expenses and debt service.Commercial Cash-on-Cash Return CalculatorEstimate annual cash-on-cash return from commercial property cash flow and total cash invested.Commercial DSCR CalculatorCalculate debt service coverage ratio using a commercial property’s NOI and annual principal-and-interest debt service.Commercial Gross Rent Multiplier CalculatorCalculate gross rent multiplier from a commercial property price and annual gross rental income.
?Help