Enter the net operating income ($) and the current market value ($) into the Calculator. The calculator will evaluate the Net Cap Rate. 

Net Cap Rate Formula

NCR = NOI / CMV

Variables:

  • NCR is the Net Cap Rate ($/$)
  • NOI is the net operating income ($)
  • CMV is the current market value ($)

To calculate the Net Cap Rate, divide the net operating income by the current market value.

How to Calculate Net Cap Rate?

The following steps outline how to calculate the Net Cap Rate.

  1. First, determine the net operating income ($). 
  2. Next, determine the current market value ($). 
  3. Next, gather the formula from above = NCR = NOI / CMV.
  4. Finally, calculate the Net Cap Rate.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

net operating income ($) = 768

current market value ($) = 1200