How to Use This Calculator
The cap rate calculator solves any one of three variables given the other two: cap rate, property value, or net operating income. Use the tabs at the top to switch modes:
- Calculate Cap Rate — Input NOI and value, see the resulting cap rate. Use this when evaluating a property at an asking or offer price.
- Calculate Value — Input NOI and a market cap rate, see what the property should sell for. Use this to back into pricing on a deal you're analyzing.
- Calculate NOI — Input target value and cap rate, see required NOI. Use this when underwriting a value-add or stabilization plan.
Florida Cap Rates by Asset Class
Use these as starting benchmarks. Always validate against current comparable sales and seek a market opinion from a local broker.
- Multifamily (Class A): 4.25–5.25%
- Multifamily (Class B): 5.0–6.0%
- Industrial / Warehouse: 5.5–6.5%
- Retail (Grocery-Anchored): 5.75–6.5%
- Medical Office: 5.25–6.25%
- Office (Class A Suburban): 6.5–8.5%
- Hotel (Select Service): 7.0–9.0%
- NNN (Credit Tenant): 5.0–6.5%
For a detailed explanation, see our complete cap rate guide and the latest 2026 Florida cap rate trends.
Sophisticated underwriting models both a going-in cap rate (year-1 NOI vs purchase price) and a going-out cap rate (exit-year NOI vs disposition value) — with 25-75 bps of expected cap rate expansion across the hold period. For debt-free yield comparison across multiple Florida deals, use the free and clear return — NOI divided by total acquisition cost including all closing costs. Submarket-level absorption trends drive cap rate direction over the hold period.
FAQ
How do I use a cap rate calculator?
Input two of the three variables — NOI, property value, or cap rate — and the calculator solves for the third. Use the "Calculate Cap Rate" mode to evaluate a deal at a given price, "Calculate Value" mode to back into what a property is worth at market cap rates, or "Calculate NOI" mode to determine what income is required for a target cap rate.
What cap rate should I use for a Florida commercial property?
Use current market cap rates by asset class and submarket. In Florida: Class A multifamily trades at 4.25–5.25%, industrial at 5.5–6.5%, grocery-anchored retail at 5.75–6.5%, medical office at 5.25–6.25%, and select service hotels at 7–9%. Tertiary markets and Class B/C properties trade at higher cap rates.
Is the cap rate calculator accurate for valuation?
The calculator gives a precise mathematical result, but valuation accuracy depends on input quality. Use trailing 12-month actual NOI (not pro forma), use market cap rates appropriate to the asset class and submarket, and adjust for property-specific factors like deferred maintenance, lease terms, and CapEx requirements.