Property Value Calculator
How to use this property value calculator
Find your property's value in 3 steps
Enter NOI
Type the yearly NOI.
Enter Cap Rate
Type the cap rate % you want.
See Property Value
See the estimated property price.
How this property value calculator works
See the math (optional)
This tool flips the normal cap rate formula. Instead of finding cap rate from income and price, it finds the price (value) from income (NOI) and cap rate.
Reverse Formula
Property Value
NOI
Cap Rate
/ 100Example: $80,000 / (6.5 / 100) ≈ $1,230,000
What each number means
Annual NOI ($)
The yearly Net Operating Income (rent minus running costs, before loan payments).
Target Cap Rate (%)
The yearly return % you want on the property.
Property Value ($)
The estimated price an investor could pay to get that return from this NOI.
Real-World Examples
See it in action
Scenario A: Premium Property
Typical for high-quality properties in prime locations with stable income.
Scenario B: Balanced Investment
A common target for residential investment properties in good markets.
Scenario C: High Yield
Often older properties or riskier markets requiring higher returns.
Related Tools & Guides
Explore more real estate calculators
Frequently Asked Questions
How to calculate property value from NOI and cap rate?
The formula is: Value = NOI / (Cap Rate % / 100). For example, if you have $80,000 in NOI and target a 6.5% return, calculate 80,000 / (6.5 / 100) to get approximately $1,230,000 in property value.
What does the calculated property value represent?
The result represents the estimated property value based on your NOI and target cap rate. This is what investors should pay to achieve their desired return, before financing costs.
Why is this calculation useful?
It helps you determine if a property is overvalued or undervalued. If the market price is higher than your calculated value, you may be paying too much. If it's lower, it could be a good deal.
Does this include mortgage payments?
No. This calculation is based on NOI (income before debt service) and cap rate (return on investment). Mortgage payments are paid out of NOI but don't affect the cap rate calculation itself.
What is a good cap rate to use?
Cap rates vary by property type, location, and market conditions. Generally, 4-6% is common for stable properties in prime areas, while 8-12% may be expected for higher-risk or secondary market properties.