Annual NOI & Cap Rate Calculator
Reconcile annual rent, explicit losses, other receipts and operating costs. Calculate NOI and cap rate on supplied price/value, not loan approval.
What This Calculator Does
Build one annual operating scenario from six explicit facts. Subtract the supplied vacancy/credit-loss allowance from scheduled gross rent; other receipts already reflect their collection losses, before costs. Subtract operating expenses to obtain NOI, then divide by the supplied purchase price or property value. Negative and exact-zero NOI are valid. This is not an appraisal, market quality grade or full underwriting.
Who Is This For
Buyers, owners and real estate professionals checking a property's yearly income before financing. Count income and expenses the same way each time and use the price or value consistently; property documents and the lender's review still come separately.
How It Works
Choose the price type and enter the five amounts, using 0 where it is zero. Use the same 12 months, the full rent before vacancy and other income as actually collected. Tick the confirmation. Read the six results and the five exact figures before rounding; very small amounts keep their plus or minus sign.
Frequently Asked Questions
What are NOI and cap rate in this model?
Yearly NOI = income after vacancy minus operating expenses. Cap rate = NOI ÷ the purchase price or property value you entered × 100. The six results show rent lost to vacancy, rent after vacancy, total income, NOI, cap rate and whether the property makes or loses money to operate. The five exact figures are the same calculation before rounding, not extra measures or verified receipts.
How are vacancy and other income treated?
Scheduled gross annual rent is before the explicit rent vacancy/credit-loss allowance. Other receipts are already effective after their own collection losses but before operating costs, so rent loss is not applied again. For example, rent US$60,000 less 10% gives US$54,000; other US$3,000 gives US$57,000, less expenses US$18,000 gives NOI US$39,000. Do not use already-collected rent as gross and deduct vacancy twice.
Are zero rent, zero expenses and negative NOI valid?
Known zero inputs are valid; unknown or blank is not zero. With price US$500,000, no operating receipts and expenses US$10,000, NOI is negative US$10,000 and cap rate negative 2%. That is an operating-loss scenario, not an automatic loan rejection. Break-even means exact NOI zero, not a rounded display of zero. Positive NOI is still before excluded costs.
Why distinguish price/value from invested cash or total project cost?
Cap rate divides by the price or property value you entered, not by the down payment or your cash. NOI of $36,000 on a $500,000 price gives 7.2%; on a $600,000 value it gives 6%. Neither value is appraised here. Dividing by total project cost would give yield on cost, and after-mortgage cash flow ÷ your cash would give cash-on-cash return; the calculator doesn't swap in either one.
Which expenses are included and excluded?
Use consistently defined annual recurring property expenses, such as property tax, property insurance, management, routine repairs and owner-paid services. Costs of other receipts enter once. Debt principal/interest, financing insurance/fees, acquisition costs, capex, depreciation and owner income tax are excluded. Reserve policies can vary; this model does not certify every lender's underwritten NOI. Property tax is not owner income tax.
How are fractions of a cent and very small rates shown?
Percent-based losses can create fractional cents. Every nonzero annual cash magnitude below US$0.01 and cap-rate magnitude below 0.0001% keeps its sign in a small-value display, not zero. Other cash uses nearest cents and rates four decimals, exact halfway magnitudes away from zero. Raw method values may use scientific notation. Exact NOI sign, never display rounding, determines operating surplus, loss or zero.
Are ranges or high cap rates investment-quality rules?
No. The $2 billion field limit and the 0–100% vacancy range are form limits, not market or lender rules. Rent and other income are entered separately, so total income or NOI can reach $4 billion. A cap rate can exceed 100% or be negative and isn't cut off. No automatic Excellent/Good grade, regional benchmark or 6% threshold is used. Every amount must be filled in and cover the same period.
What does the lender reference establish?
CoreVest Finance's glossary was read October 3, 2026 for cap-rate, GOI, NOI and operating-expense definitions. The saved September 30 arithmetic baseline is distinct, not an archived current-market dataset. The reference does not verify this property's data, establish a regional benchmark or approve a loan. No generic vacancy average is imported. Check actual documents, cost definitions and lender requirements separately.