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.

- First, determine the net operating income ($).
- Next, determine the current market value ($).
- Next, gather the formula from above = NCR = NOI / CMV.
- Finally, calculate the Net Cap Rate.
- 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